HC Deb 05 July 1956 vol 555 cc1526-7
37. Mr. Teeling

asked the Chancellor of the Exchequer whether he will instruct the Brighton tax collectors not to issue a distress warrant in the case, particulars of which the honourable Member for Brighton, Pavilion, has forwarded to him, in view of the fact that more is owed by the Government in this case than is claimed by the Inland Revenue; and whether he will amend his regulations so that where a person owes less in income tax than the amount of post-war credits he holds but cannot cash, no proceedings shall be taken against him.

The Financial Secretary to the Treasury (Mr. Henry Brooke)

No, Sir. The possibility of distraint arose because of the taxpayer's failure to respond to an invitation to call at the collector's office to discuss his debt of some £10, which dates from 1950. My hon. Friend has perhaps not realised that the course he suggests would enable millions of post-war credit holders, by withholding payment of tax, to obtain the equivalent of immediate cash for their credits.

Mr. Teeling

Does my right hon. Friend realise, as I did not realise, until the publicity given to this matter in the Press, how many very small people owing very small amounts of money are being brutally pressed by Income Tax collectors? Does he not think, since all Governments have not done their duty after the war with regard to post-war credits, that either these credits should be impounded and taken against money owing to the Government, if it is less than £45 post-war credits, as in this case, or whatever the sum may be, or that it should in some way be used as a credit and that nothing should be done against the person if he is proved to be in financial difficulties?

Mr. Brooke

I have pointed out to my hon. Friend the difficulty in his suggestion. As to the taking of undue action against this particular taxpayer, when a man leaves a tax debt of £10 outstanding for six years, the collector must do something.

Mr. Teeling

In view of the very unsatisfactory answer, I beg to give notice that I shall raise the matter on the Adjournment.