Tag Archives: tax evasion

Is Iain Duncan Smith legalising breach of contract?

Iain 'Daftie' Duncan Smith before a previous hearing of the Work and Pensions committee.

Iain ‘Daftie’ Duncan Smith before a previous hearing of the Work and Pensions committee.

Here’s something mentioned during Iain Duncan Smith’s session before the Commons Work and Pensions committee last week, that doesn’t seem to have enjoyed enough attention: It seems Daftie Duncan Smith wants to legalise breach of contract.

He reckons part-time workers should be sanctioned off their top-up benefits if they refuse extra hours offered by their employer.

The sanctions would apply under the Universal Credit system – which is never going to work anyway – so perhaps this is an inconsequential matter, but it is disturbing that the Secretary of State for Work and Pensions understands so little about contracts of employment that he thinks this is a reasonable way to behave.

He told the Work and Pensions committee: “That is being investigated, as to whether we can now work to in-work sanctions – in other words, conditionality – so people get an opportunity to move up the hours if they can, and if they don’t wish to do that, we will see whether or not that system of conditionality works.”

Perhaps he doesn’t realise that some people are only able to work a certain number of hours per week, and that any increase means they will not be able to continue in the job. Perhaps he doesn’t realise that this will make them unemployed, and his “conditionality” prank means that they would be sanctioned off being able to claim benefits for a period of time after that, meaning they would be doubly punished for a situation that was not their fault.

Perhaps he doesn’t care. Yes, that seems more likely.

He certainly doesn’t understand contract law. When two parties enter into a contract of employment, it is a binding agreement on both of them – and if it is not honoured by either party – for example, if the employer tells the employee that their hours of work will be extended, rather than negotiating a change in the contract that is agreeable to both – then that party is said to be in breach of that contract.

And does this not open HM Revenue and Customs up to a potential explosion of Income Tax and National Insurance fraud?

Look at the situation Vox Political reported recently, in which a JSA claimant interviewed for a job lasting 22.5 hours per week and then had to turn it down when managers tried to increase the hours to 40; the employer told the Job Centre and he was sanctioned.

He had his benefit reinstated when he reported the employer for potential tax evasion and then told JSA decision makers what he had done, making it clear that he did not see why his benefit should be docked for refusing to take part in an illegal act.

Did Daftie consider this? Or did he think it would be okay because his government wants to reduce the amount of Income Tax it receives anyway, in order to justify cutting public services or selling them off to fatcat tax-avoiding businesspeople?

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Lobbying Bill rethink – another Tory ‘bait-and-switch’?

Listening on lobbying: Andrew Lansley proved exactly how trustworthy he is with the Health and Social Care Act 2012. Now he stands ready to hear concerns over the Lobbying and Transparency Bill.

Listening on lobbying: Andrew Lansley proved exactly how trustworthy he is with the Health and Social Care Act 2012. Now he stands ready to hear concerns over the Lobbying and Transparency Bill.

It seems we have all been victims of a Parliamentary stitch-up.

Everyone who was getting hot under the collar last week, because the Transparency of Lobbying, non-Party Campaigning, and Trade Union Administration Bill seemed to be attacking the fair and proper work of charities and other organisations, probably breathed a sigh of relief when the government announced it would scrap plans to change the way campaign spending is defined.

The Bill would have restricted any charitable campaigning which “enhances the standing of parties or candidates”, in the full year before an election, to £390,000. That’s a 70 per cent cut – plus it would now include staff costs.

The BBC reported that Andrew Lansley has tabled a series of amendments, including one reverting to the wording set out in existing legislation, defining controlled expenditure as any “which can reasonably be regarded as intended to promote or procure electoral success”.

What the BBC does not say, but is clarified in the government press release, is that “the Bill will still bring down the national spending limit for third parties, introduce constituency spending limits and extend the definition of controlled expenditure to cover more than just election material, to include rallies, transport and press conferences“.

In other words, this is a very minor change. Spending is still restricted during election years (and almost every year is an election year); the work of trade unions will be savaged – in a country that already has the most savage anti-union laws in Europe; and all organisations will still have to watch what they say about anything which might be considered an election issue.

Want to campaign to protect the NHS, introduce fair taxation, fight poverty, improve public health or education, reform the financial sector or civil liberties, or fight the privatisation agenda? Then your budget will be scrutinised and you may not go over. And don’t forget there will be limits on spending within constituencies.

This still means that smaller organisations will enjoy greater influence than larger ones and – perhaps most telling of all – it does not clarify the position with regard to the corporate media. Will the mainstream press be curtailed? Rupert Murdoch’s News Corp UK and the Daily Mail Group spend far more than £390,000 every day, and on material that absolutely is “intended to promote or procure electoral success” – for the Conservative Party. Does anybody seriously believe the Tories will enforce action against their supporters?

One tangential element that this does clarify is the BBC’s political stance. Its story makes no mention of the more-than-100 other amendments that have been proposed for the Bill – possibly because they were put forward by MPs who aren’t in the government. Nor does it mention any of the technicalities that water down yesterday’s announcement. Instead, the BBC presents it as a victory for charities, who are getting everything they want. They aren’t.

It’s another Tory ‘bait-and-switch’ trick.

Doubly so, in fact, because this little circus has diverted attention away from the other aspects of the Bill – its clampdown on trade unions and the fact that it does almost nothing to address lobbying, which was supposed to be its reason for existing in the first place!

Joint co-operation between various trade unions will be made more difficult – to such an extent that the Trade Union Congress will effectively be banned in election years (meaning almost every year).

All unions with more than 10,000 members will have to submit an annual ‘Membership Audit Certificate’ to the Certification Officer in addition to the annual return which they already make. The Certification Officer will have the power to require production of ‘relevant’ documents, including membership records and even private correspondence. What is the rationale for these draconian provisions when not a single complaint has been made to the Certification Officer about these matters?

Is the real motive behind this section of the bill to help employers mount injunction proceedings when union members have voted for industrial action, by seizing on minor if not minuscule flaws which the Court of Appeal would previously have considered ‘de minimis’ or ‘accidental’? Isn’t this about inserting yet further minute technical or bureaucratic obstacles or hurdles in the path of trade unions carrying out their perfectly proper and legitimate activities?

And what about the potentional for ‘blacklisting’? If union membership records are to be made publicly available, as seems the case, then it will be possible for businesses to single out job applicants who are union members and refuse them work.

And then we come to the matter of lobbying itself.

This Bill still does not do what it is supposed to do. A register of consultant lobbyists is not adequate to the task and would not have prevented any of the major lobbying scandals in which David Cameron has been embroiled.

Practically all forms of lobbying, including direct donations to political parties by corporate and private interests, will remain totally unaffected by the legislation and corporations could sidestep it easily, simply by bringing their lobbying operations “in house”.

No less than 80 per cent of lobbying activity will not be covered by the bill – and it must be amended to cover this percentage. The only lobbyists that will be affected are registered lobbying agencies, who will presumably suffer large losses as their clients leave. Perhaps the real aim of this part of the bill is to stop lobbying from organisations that don’t have enough money to make it worth the government’s while?

How does this bill prevent wealthy individuals and corporations from buying political influence through party political donations – direct donations to MPs who then coincidentally vote in ways beneficial to their donors – or directly to political parties, such as David Cameron’s “The Leaders Group”?

How will it stop paid lobbyists like David Cameron’s election adviser Lynton Crosby from having influential roles in politics?

How will it stop people with significant lobbying interests, like George Osborne’s father-in-law David Howell, being appointed as advisers and ministers in areas where they have blatant conflicts of interests with their lobbying activities?

How will it increase transparency when it comes to which organisations have been lobbying which politicians on particular issues?

It won’t.

Nor will it stop lobbyists targeting ministers’ political advisers (SPADs), as was witnessed in the Jeremy Hunt Sky TV affair.

Or prevent corporate interests being invited to actually write government legislation on their behalf – for example the ‘big four’ accountancy firms, who run many tax avoidance schemes, actually write UK law on tax avoidance.

An adequate register would cover all of the above, including details of all non-Parliamentary representatives seeking to influence members of the government, how much they paid for the privilege, and what they expected to get for their money.

Then we will have transparency.

The Queen’s Speech (translated) – brief words signifying so much harm

A true pro: It is a testament to the Queen's skill that she is able to get through her speech at the annual opening of Parliament without either laughing at the stupidities or choking in horror at the implied threats to her citizens.

A true pro: It is a testament to the Queen’s professionalism that she is able to get through her speech at the annual opening of Parliament without either laughing at the stupidities or choking in horror at the implied threats to her citizens.

Today the Queen made her speech at the official opening of Parliament. Her words were, as always, written by the government of the day, and therefore it seems appropriate to provide a translation, as follows:

“My government’s legislative programme will continue to focus on building a stronger economy so that the United Kingdom can compete and succeed in the world.” Focus on it, but do nothing about it.

“It will also work to promote a fairer society that rewards people who work hard.” If you haven’t got a job, you’re shafted.

“My government’s first priority is to strengthen Britain’s economic competitiveness. To this end, it will support the growth of the private sector and the creation of more jobs and opportunities.” There is no intention to take any action in this regard; the government will simply applaud actions taken by others.

“My ministers will continue to prioritise measures that reduce the deficit – ensuring interest rates are kept low for homeowners and businesses.” Interest rates are nothing to do with the government. It is easy to make promises when no action is required.

“My government is committed to building an economy where people who work hard are properly rewarded. It will therefore continue to reform the benefits system, helping people move from welfare to work.” My government is committed to building a low-wage economy where people have to work hard simply to keep what they’ve got. It will therefore continue to erode the benefits system, forcing people to move from welfare to destitution as a warning to those who’ve got jobs, that this will happen to them if they make a fuss.

“Measures will be brought forward to introduce a new employment allowance to support jobs and help small businesses.” A bung for our friends.

“A bill will be introduced to reduce the burden of excessive regulation on businesses. A further bill will make it easier for businesses to protect their intellectual property.” Deregulation worked so well with the banks in 2007, we thought we’d give other businesses a chance to ruin the economy. And it’s not enough that Facebook now owns everybody’s photographs – corporations want everything else as well.

“A draft bill will be published establishing a simple set of consumer rights to promote competitive markets and growth.” The rights of the consumer will be restricted to what we say they’re allowed, to protect corporate freedoms.

“My government will introduce a bill that closes the Audit Commission.” We don’t want the public to know the facts about our spending and where it goes (into our pockets).

“My government will continue to invest in infrastructure to deliver jobs and growth for the economy.” But we’re not saying where the money will go (into our pockets).

“Legislation will be introduced to enable the building of the High Speed Two railway line, providing further opportunities for economic growth in many of Britain’s cities.” Future economic growth, of course – we won’t see the benefit for many, many years.

“My government will continue with legislation to update energy infrastructure and to improve the water industry.” At huge cost to everybody who has to pay the bills.

“My government is committed to a fairer society where aspiration and responsibility are rewarded.” This is meaningless.

“To make sure that every child has the best start in life, regardless of background, further measures will be taken to improve the quality of education for young people.” This is meaningless.

“Plans will be developed to help working parents with childcare, increasing its availability and helping with its cost.” Private childcare organisations, starting cheaply but costing more as they get a grip on parents.

“My government will also take forward plans for a new national curriculum, a world-class exam system and greater flexibility in pay for teachers.” We’re going to stamp on teachers hard. And the new national curriculum means nobody from state education will be able to compete with our children at Eton.

“My government will also take steps to ensure that it becomes typical for those leaving school to start a traineeship or an apprenticeship, or to go to university.” We’ll shoehorn the state-school mob into something under threat of destitution, and save university for people who can pay for it (like us).

“New arrangements will be put in place to help more people own their own home, with government support provided for mortgages and deposits.” More second homes for Tory voters, as set out in the Chancellor’s Budget speech in March.

“My government is committed to supporting people who have saved for retirement.” If they have savings, they won’t need the national pension and can give it back, like Iain Duncan Smith suggested.

“Legislation will be introduced to reform the way long-term care is paid for, to ensure the elderly do not have to sell their homes to meet their care bills.” They can die there instead.

“My government will bring forward legislation to create a simpler state pension system that encourages saving and provides more help to those who have spent years caring for children.” It’ll encourage saving because it won’t be enough; and carers can have the kids taken away from them.

“Legislation will be introduced to ensure sufferers of a certain asbestos-related cancer receive payments where no liable employer or insurer can be traced.” Otherwise we’ll get the blame for abandoning them.

“My government will bring forward a bill that further reforms Britain’s immigration system. The bill will ensure that this country attracts people who will contribute and deters those who will not.” We’re scared that UKIP is taking our voters away.

“My government will continue to reduce crime and protect national security.” We will privatise the police, MI5 and MI6.

“Legislation will be introduced to reform the way in which offenders are rehabilitated in England and Wales.” If you thought our prisons were schools for criminals before, we’re turning them into universities.

“Legislation will be brought forward to introduce new powers to tackle anti-social behaviour, cut crime and further reform the police.” We will privatise the police and introduce curfews.

“In relation to the problem of matching internet protocol addresses, my government will bring forward proposals to enable the protection of the public and the investigation of crime in cyberspace.” We want to know how it works so we can make money off the internet.

“Measures will be brought forward to improve the way this country procures defence equipment, as well as strengthening the reserve forces.” We’ll buy the cheapest equipment we can find and ask the reservists to do it for no pay.

“My ministers will continue to work in co-operation with the devolved administrations.” Wales, Scotland and Northern Ireland will get even less cash.

“A bill will be introduced to give effect to a number of institutional improvements in Northern Ireland.” It’s too peaceful over there and we need something to distract the plebs from the mess we’re making in the rest of the country.

“Draft legislation will be published concerning the electoral arrangements for the National Assembly for Wales.” If we give the sheep the vote, they might vote Tory.

“My government will continue to make the case for Scotland to remain part of the United Kingdom.” We want their money; we want their oil.

“Members of the House of Commons, estimates for the public services will be laid before you.” Prior to privatisation.

“My government will work to prevent conflict and reduce terrorism. It will support countries in transition in the Middle East and north Africa, and the opening of a peace process in Afghanistan.” We want their money; we want their oil.

“My government will work to prevent sexual violence in conflict worldwide.” We can’t even stop it here.

“My government will ensure the security, good governance and development of the overseas territories, including by protecting the Falkland Islanders’ and Gibraltarians’ right to determine their political futures.” They’re strategically important so we’ll rattle the sabre for them.

“In assuming the presidency of the G8, my government will promote economic growth, support free trade, tackle tax evasion, encourage greater transparency and accountability while continuing to make progress in tackling climate change.” We’ll blame the other nations when none of these things happen.

“Other measures will be laid before you.”

That’s not a promise; it’s a threat.