He was once (briefly) my boss, and he’s told me he reads this blog, so you won’t be surprised that I have some sympathy with Anthony Inglese, the Solicitor to H.M. Revenue & Customs, over his experience before the Public Accounts Committee on Monday. The committee was so dissatisfied with his approach to answering questions that he was forced to give his evidence on oath – an unusual step. Here’s a BBC report of what happened, or you can see his evidence in full on Parliament’s website.

The Committee’s looking into how HMRC handled settlements of tax disputes with Vodafone and Goldman Sachs, which appear to have been very favourable to the companies. UK Uncut is threatening a judicial review claim over the settlements – something Anthony Inglese was anxious to stress to the committee, as he sought repeatedly to rely on legal professional privilege to deflect their questioning.

A couple of things were interesting about this incident, from my point of view. First, I think Anthony was ill-advised to approach answering the committee in such an extremely cautious, hesitantly insistent-on-precision way. It seemed to me the committee (especially the chair, Margaret Hodge, and Richard Bacon MP) were riled as much by Anthony’s manner as by his actual answers. I know he’ll have wanted to do the opposite, but unfortunately contrived to look as evasive as James Murdoch did before the Culture committee today. He certainly ought to have changed his approach more quickly as he got the feel of the committee’s mood.

But the committee wasn’t completely fair to him, either – I do think Margaret Hodge ought to have allowed him to answer her questions in his own way, rather than try to bludgeon him quite so much into what I can understand from his viewpoint were potentially misleading yes/no alternatives.

Most interesting of all, though, was that the committee did not in the end get him to answer anything that was legally privileged. Once the oath was taken, strangely they seemed to ease up on him, gave him more space to answer, and apparently became more satisfied. Odd, this; legal professional privilege puts a lawyer in an awkward situation professionally speaking (although no disciplinary action could ever be taken against him for his answers, since Parliamentary privilege applies) but it doesn’t override the obligation to give full and frank answers to the committee, as I’ve written before. They seemed simply to give up after they’d roughed their witness up a bit.

Many people will also I think find it extraordinary that H.M. Commissioners of Revenue & Customs don’t seem to accept it’s lawful for them to answer these questions (there was a debate about the meaning of the relevant provisions of the Commissioners for Revenue and Customs Act 2005 at one stage between Steven Barclay MP and Anthony Inglese), and have not given a standing instruction under section 20(1) that disclosure to the PAC is in their view in the public interest, at least as regards corporate taxpayers. It’s not at all clear this legal position – assuming it’s correct – is in the public interest, and I think HMRC officials should be exposed to much more pressure on the issue than the committee, ultimately, applied to Anthony Inglese.

A tough and embarrassing experience then. But in the end I think he left without having given away anything he didn’t want to.

2011-11-10T17:57:32+00:00