Parliamentary Standards Bill

Yes, absolutely. Many Members have been criticised and challenged for the way in which they were relying on the obscurity of the system, the failures in administration, and so on. We need to be upfront and explicit so that we are clear where things lie in future. In proposed new subsection (3), I am saying that, given that the authority's role is in parliamentary standards, it should provide general guidance to Members. I am not saying that it should be responsible for the tax returns or for all kinds of advice, but that it should provide general guidance to Members on relevant principles and considerations of due parliamentary standards to be reflected in the preparation and submission of their tax returns""in particular as they relate to property, items or benefits funded or part-funded by the Members of Parliament's allowances."" Such guidance should also be provided in relation to""such other costs as may be presented as work-related expenses"—" in a tax return—""in connection with their role as a Member of Parliament."" I have included that provision because it has been revealed in recent times that a number of Members used their allowances, apparently wrongly, to get assistance and advice on tax returns that dealt with some of the particular requirements of being a Member of Parliament. Indeed, it seems that some people were passing around the cards of people who could give bespoke advice—whether they were qualified or not, I am not sure, but they were able to give bespoke advice on tax returns and so on. It seems to me that there is something missing when we do not have a source of general guidance available to us in that regard. It is important that we should recognise that the authority is not just there to police and investigate what Members do, but to support us in our efforts to do the right thing by way of due parliamentary standards, and we should make it very clear that the authority will provide appropriate guidance to us on such matters. The situation changes from time to time, and Members can be caught offside because of rule changes that they do not appreciate—many such things have been referred to—and it is important to ensure that the authority's role includes providing that guidance. To leave it with a "pounce and bounce" role towards any Member whenever it feels like it or when some member of the public feels like it seems to me to be odd. We have to recognise that the taxation issue is a matter of concern. It will probably be the next big focal point. We know that there is a big issue about second jobs and the questions of what needs to be declared in relation to them, but taxation will be another big focal point and challenge. We need to make sure that the authority that we are setting up responds to the concerns and the sense of scandal that people feel. The public have an image of the House as being like a good ship "Lollipop" moored on the Thames, where we all do what we want and try to get what we can. It is important that people do not see us follow cleaning up the allowance system with cleaning up on the tax system, and they must not perceive that we have unclear rules and no clear guidance on tax. If we have complained about the lack of them in the past in relation to allowances—and Members have said that they were not aware of the sensitivities involved or the possibility that claims could be held to be improper or unsuitable—we must make it very clear that the authority has a duty to provide general guidance about tax. This House is the only place that passes the law on taxation, including on capital gains tax. We cannot afford to be casual about whether we comply with the requirements of the tax law, or about whether those requirements go together with achieving good parliamentary standards, and that is why we should make sure that the appropriate provision is in the Bill. Yes, we are human: we know that tax laws and tax compliance can be difficult to understand and, even with the provision of general guidance, our tax returns would remain our own responsibility. We would also be responsible for the advice given by the professional advisers that we hire, but the authority's guidance role should be made clear. The need for guidance goes beyond the treatment of items funded, in full or in part, for the purposes of CGT or any other tax. We also need it for other items that might be claimed as work-related expenses. My accountant always asks why I do not claim such items, as he says that there must be plenty of things that I could claim as work-related expenses. I do not make such claims—I am sure that others do, and probably quite legitimately—but the next false dividing line used to determine which Members claim what will be taxation. We all need the protection of good advice and guidance that are given in the light of considered parliamentary standards. There have been stories in the media recently about some of the exotic and expensive claims that have been refused by the Fees Office. There are questions about whether some of the claims presented in tax returns and approved as work-related expenses were reasonable. If significant curbs are placed on the allowances paid to Members in future, will that force them to consider claiming work-related expenses on their tax forms? Once again, questions will arise about the propriety and consistency of that approach. If it is left to hon. Members to take their chances in that regard, or to go with whatever advice they have been given, it will occur to a person working in the tax office—just as it did to someone in the Fees Office—that the range of practices is very wide, and that all sorts of things are being tried on. That person will then take away a disc, and in a year or two a job will be done, like the one that we have just seen in The Daily Telegraph, on tax matters. If we reject the new clause, or if we do not make similar provision in the Bill, we will then rush to say, "Shock! Horror! We didn't realise tax was also going to be an issue in relation to parliamentary standards", even though we have been served absolute and due notice of that. Proposed new subsection (4) of new clause 10 would merely ensure that, when IPSA is preparing the general guidance for Members, it would consult with Revenue and Customs so that the guidance was more reliable. It would also mean that Members under pressure in years to come can say that they relied on that guidance. As a result, they will be in a much stronger position than Members who said that they relied on advice from the Fees Office about what expenses claims would be approved.