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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How the Lib Dems learned to love all-women shortlists

Yes, the sitting Lib Dem MPs are mostly white, middle-aged middle class men. But the party's not taking any chances. 

I can’t tell you who’ll be the Lib Dem candidate in Southport on 8 June, but I do know one thing about them. As they’re replacing a sitting Lib Dem (John Pugh is retiring) - they’ll be female.

The same is true in many of our top 20 target seats, including places like Lewes (Kelly-Marie Blundell), Yeovil (Daisy Benson), Thornbury and Yate (Clare Young), and Sutton and Cheam (Amna Ahmad). There was air punching in Lib Dem offices all over the country on Tuesday when it was announced Jo Swinson was standing again in East Dunbartonshire.

And while every current Lib Dem constituency MP will get showered with love and attention in the campaign, one will get rather more attention than most - it’s no coincidence that Tim Farron’s first stop of the campaign was in Richmond Park, standing side by side with Sarah Olney.

How so?

Because the party membership took a long look at itself after the 2015 election - and a rather longer look at the eight white, middle-aged middle class men (sorry chaps) who now formed the Parliamentary party and said - "we’ve really got to sort this out".

And so after decades of prevarication, we put a policy in place to deliberately increase the diversity of candidates.

Quietly, over the last two years, the Liberal Democrats have been putting candidates into place in key target constituencies . There were more than 300 in total before this week’s general election call, and many of them have been there for a year or more. And they’ve been selected under new procedures adopted at Lib Dem Spring Conference in 2016, designed to deliberately promote the diversity of candidates in winnable seats

This includes mandating all-women shortlists when selecting candidates who are replacing sitting MPs, similar rules in our strongest electoral regions. In our top 10 per cent of constituencies, there is a requirement that at least two candidates are shortlisted from underrepresented groups on every list. We became the first party to reserve spaces on the shortlists of winnable seats for underrepresented candidates including women, BAME, LGBT+ and disabled candidates

It’s not going to be perfect - the hugely welcome return of Lib Dem grandees like Vince Cable, Ed Davey and Julian Huppert to their old stomping grounds will strengthen the party but not our gender imbalance. But excluding those former MPs coming back to the fray, every top 20 target constituency bar one has to date selected a female candidate.

Equality (together with liberty and community) is one of the three key values framed in the preamble to the Lib Dem constitution. It’s a relief that after this election, the Liberal Democratic party in the Commons will reflect that aspiration rather better than it has done in the past.

Richard Morris blogs at A View From Ham Common, which was named Best New Blog at the 2011 Lib Dem Conference

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