Five questions answered on the call to ban "insider" tax accountants

What are "insider" tax accountants?

A report from the Commons Public Accounts Committee released today has called for a ban on ‘insider’ tax accountants. We answer five questions on the latest issue surrounding tax avoidance in the UK.

What are so-called ‘insider’ tax accountants?

According to the report, they are external accountants that also work inside government. The accountants are seconded to work in government to advise on changes to tax law.

What are MPs’ main problem with this working practice?

They believe that the HM Revenue and Customs (HMRC) can not win the battle against tax avoidance with these ‘insider’ accountants working in the system as they can gleam insider knowledge of the tax system and advise their clients of loopholes.

They also called for a ban on firms being used by the public sector if they had been selling tax avoidance schemes.

It has been called a ‘ridiculous conflict of interest’.

What else did the report say?

It also suggested that tax officiald were outnumbered by well-resourced accountancy firms, and that the big four accountancy firms employed about 9,000 staff a year and earned £2bn a year from their tax work in the UK.

The report said: "We have seen what look like cases of poacher turned gamekeeper, turned poacher again, whereby individuals who advise government go back to their firms and advise their clients on how they can use those laws to reduce the amount of tax they pay.”

What are those in the know saying?

Jim Harra, director-general of business tax at HMRC, told the BBC: "Clearly they [tax accountants seconded to the government] do go back out with some expertise and they do advise on how to use the legislation. We watch very carefully what advice accountants are giving to their clients.

"Provided that advice is how to use the legislation in accordance with the way Parliament intended it to be used, then we have no problems with that."

What else are the government doing to combat tax avoidance?

Last year the HMRC announced that it would invest a further £77m to expand its anti-avoidance and evasion work.

In recent months the government has come under pressure to do something about the tax avoidance, which has regularly hit the headlines with companies such as Starbucks, Amazon and Google being criticised for the amount of tax they pay in the UK.

Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

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Harriet Harman warns that the Brexit debate has been dominated by men

The former deputy leader hit out at the marginalisation of women's voices in the EU referendum campaign.

The EU referendum campaign has been dominated by men, Labour’s former deputy leader Harriet Harman warns today. The veteran MP, who was acting Labour leader between May and September last year, said that the absence of female voices in the debate has meant that arguments about the ramifications of Brexit for British women have not been heard.

Harman has written to Sharon White, the Chief of Executive of Ofcom, expressing her “serious concern that the referendum campaign has to date been dominated by men.” She says: “Half the population of this country are women and our membership of the EU is important to women’s lives. Yet men are – as usual – pushing women out.”

Research by Labour has revealed that since the start of this year, just 10 women politicians have appeared on the BBC’s Today programme to discuss the referendum, compared to 48 men. On BBC Breakfast over the same time period, there have been 12 male politicians interviewed on the subject compared to only 2 women. On ITV’s Good Morning Britain, 18 men and 6 women have talked about the referendum.

In her letter, Harman says that the dearth of women “fails to reflect the breadth of voices involved with the campaign and as a consequence, a narrow range [of] issues ends up being discussed, leaving many women feeling shut out of the national debate.”

Harman calls on Ofcom “to do what it can amongst broadcasters to help ensure women are properly represented on broadcast media and that serious issues affecting female voters are given adequate media coverage.” 

She says: "women are being excluded and the debate narrowed.  The broadcasters have to keep a balance between those who want remain and those who want to leave. They should have a balance between men and women." 

A report published by Loughborough University yesterday found that women have been “significantly marginalised” in reporting of the referendum, with just 16 per cent of TV appearances on the subject being by women. Additionally, none of the ten individuals who have received the most press coverage on the topic is a woman.

Harman's intervention comes amidst increasing concerns that many if not all of the new “metro mayors” elected from next year will be men. Despite Greater Manchester having an equal number of male and female Labour MPs, the current candidates for the Labour nomination for the new Manchester mayoralty are all men. Luciana Berger, the Shadow Minister for mental health, is reportedly considering running to be Labour’s candidate for mayor of the Liverpool city region, but will face strong competition from incumbent mayor Joe Anderson and fellow MP Steve Rotheram.

Last week, Harriet Harman tweeted her hope that some of the new mayors would be women.  

Henry Zeffman writes about politics and is the winner of the Anthony Howard Award 2015.