HC Deb 17 April 1956 vol 551 cc841-2
56. Mr. G. M. Thomson

asked the Chancellor of the Exchequer if he will make an investigation into the extent of tax evasion being engaged in by parents who make mutual arrangements to use seven-year covenants to obtain tax relief on the cost of their children's school fees.

Mr. H. Brooke

All practicable steps are taken by the Inland Revenue to detect attempts at evasion of tax in this and other ways. It would not be in the public interest to go into details, but I assure the House that they can be safely left to watch over this matter.

Mr. Thomson

Is the right hon. Gentleman aware that there is evidence of considerable tax evasion in this respect? Is he aware that the Evening Standard recently published interviews showing that there were several hundred covenants of this nature at Marlborough School and 1,300 at Shrewsbury School? Is this not sufficient evidence for his Department to take action?

Mr. Brooke

If the hon. Member has evidence, I shall be grateful if he will give it to me. I assure him, however, that the Inland Revenue goes into these matters with great care and that it is not possible to deceive the Inland Revenue except by telling lies.

Mr. Vane

Would it not be wiser if, later in the afternoon, we could be told that it is no longer illegal for parents to enter into deeds of covenant with places of education for the benefit of their children?

Mr. S. Silverman

Would the right hon. Gentleman care to explain how, apart from Inland Revenue inspectors, a man can deceive anybody except by telling lies?

Mr. Brooke

I am certainly not prepared to say anything which would help evildoers to discover in advance the methods used by the Inland Revenue to detect their misdoings.