Serious Crime Bill [HL]

moved Amendment No. 124: 124: Clause 75, page 42, line 5, at end insert— ““( ) The Commissioners of Her Majesty’s Revenue and Customs may delegate the exercise of the powers contained in Schedule 11 only to named officers who are considered by the Commissioners to have the appropriate seniority and skills and whose functions include the investigation and prosecution of serious crime.”” The noble Baroness said: Some of what I shall cover in moving this amendment was touched on briefly by my noble friend Lord Crickhowell on the previous amendment. In the previous group of amendments, I probed the need for the relevant powers and the need for some oversight procedures. Amendment No. 124 is a further probing amendment, which concentrates on who in HMRC may exercise the powers. Amendment No. 124 proposes that the Commissioners of Her Majesty’s Revenue and Customs may delegate the Schedule 11 powers only to named officers who satisfy two tests: first, that they are considered to have the appropriate seniority and skills; and, secondly, that their functions include the investigation and prosecution of serious crime. I said that this was a probing amendment. I do not think that it is quite right because, having looked again at Schedule 11, I see that some of the powers are granted directly to HMRC officers and not by way of delegation from the commissioners. The Minister will see, however, that my amendment probes the kind of HMRC officer who will in practice exercise the powers. The Law Society has said that it is concerned that any use of the new powers should be authorised at an appropriately senior level. In the case of the police, the senior authorising officers are chief constables or the commissioners for the City and Metropolitan police forces. The Law Society believes that the Act should make clear the level of authority required for use of the powers. As I read the Bill, it is silent on that. As we know, the powers in Schedule 11 are extensive. I hope that the Minister will agree that junior officers should not be entrusted with them. My noble friend Lord Crickhowell referred to the evidence given to the Treasury Select Committee in another place in January, when the astonishing fact was revealed that there were some 20,000 officers, presumably including some junior ones, but that that figure was to be whittled down to a smaller number. I hope that the Minister will place on record exactly what those plans entail and when they will be implemented. Will they ensure that the powers will be available only to officers who have the ““appropriate seniority and skills””? The second leg of my amendment focuses on the functions of the people who will operate the powers. The Chartered Institute of Taxation is concerned that the new powers, which may be appropriate and proportionate for the investigation of serious crime, may be inappropriate and disproportionate for the administration of the tax system and the protection of revenue. I understand that HMRC intends to separate its criminal and civil activities—if I may use that shorthand—and that the powers will be used only for the pursuit of crime and not by officers who are not concerned in that work. Will HMRC’s plans equate to the wording in my amendment and confine the powers to officers whose, "““functions include the investigation and prosecution of serious crime””?" In respect of both aspects of my amendment—confining the powers to those whose functions include investigation, and the appropriate level of seniority of officer—will HMRC’s arrangements be in place when Schedule 11 is brought into effect? It is important that people understand that robust arrangements will be in place when the powers are implemented. Indeed, is there any reason why these requirements should not be in the Bill to ensure that HMRC could never use the powers other than in accordance with this provision? As I mentioned, the Chartered Institute of Taxation is genuinely concerned about a possible reduction in the right to privacy if information gleaned by HMRC officers dealing with the criminal side were to be shared with the civil tax administration side. It believes that there should be an absolute rule that someone who is involved in the criminal aspect should never be involved in the civil aspect. Going that far would never be realistic, but can the Minister describe the extent to which different activities within HMRC would be Chinese-walled? This matter strikes at the heart of the confidentiality between HMRC and taxpayers, and the civil nature of that relationship. Some clarification would be helpful. I beg to move.