HC Deb 25 February 1960 vol 618 cc546-8
3. Mr. McKay

asked the Chancellor of the Exchequer whether he is aware that, notwithstanding the provisions of Section 47 of the Income Tax Act, 1952, which precludes new assessments after a period of six years where no effort at concealment or fraud has been attempted, deductions have been made in the amounts paid during 1959 in settlement of post-war credits assessed and notified to the payees in 1945–46; by what authority this has been done; and if he will make a statement.

The Financial Secretary to the Treasury (Sir Edward Boyle)

I have written to the hon. Member about this case.

Mr. McKay

While I admit that the letter is a very long one explaining the position very fully, may I say at once that, so far as the question of the legal position of post-war credits is concerned, I am quite sure that that is in order?

Mr. Mitchison

On a point of order. I did not hear the Minister's Answer to Question No. 3.

Sir E. Boyle

I said that I had written to the hon. Member about this case.

Mr. Mitchison

Further to that point of order. There is no case in Question No. 3.

Sir E. Boyle

I do not think that the House would bless me if I attempted to read the letter, which, as the hon. Member said, was a fairly long one, full of information, but I am glad that the hon. Member feels that it covers the points.

I apologise, Mr. Speaker. The Answer to Question No. 3 is: "I assume that this Question relates to a case about which I have written to the hon. Member. As I explained, no assessment was made in that case more than six years after the years in question."

4. Mr. McKay

asked the Chancellor of the Exchequer if he is aware that a constituent of the hon. Member for Wallsend who had his Income Tax assessment completed for the year 1945–46 was informed, in December, 1959, that in 1945–46 there was an underpayment of £34 14s. 6d. Income Tax, and that his claim for post-war credits had been reduced by £31 10s.; and since this notification was given 13 years after the assessment and no concealment or fraud has been indicated, whether he will reconsider this decision and pay the amount deducted from the post-war credits.

Sir E. Boyle

I have written to the hon. Member about this case.

Mr. McKay

I just want to say that I am quite satisfied about the letter. Nevertheless, I think that in view of what was in it and of how the matter has been investigated it ought to be publicised. [HON. MEMBERS: "What was in it?"] I want to put it to the Minister that the letter itself is not as fully satisfactory as it might be, but there is one thing which it does admit, which is that mistakes have been made by the Revenue Department on several occasions, that the Department is paying back £5 10s. to my constituent because of those mistakes and that the Department apologises and admits them. I hope that this kind of thing will not happen again. [HON. MEMBERS: "Hear, hear."] I just want to say this to the Minister—

Mr. Speaker

Order. I do not want unduly to trouble the hon. Member, but I must require him to ask questions and not to make statements.

Mr. McKay

Is the Financial Secretary satisfied that during this period that this work has been done those concerned have been as satisfied as they might have been? I have any number of complaints that people have not received notification of these deductions from post-war credits to meet underpayment of tax and, years later, have found that they have no post-war credits left?

Sir E. Boyle

I apologise unreservedly to you Mr. Speaker, and to the House for the mistake I made just new. Very briefly, the position, as the hon. Gentleman knows, is this. About £29 of tax was unpaid for 1945–46, so, to that extent, the post-war credits question never arose. A small amount of the underpayment of the previous year was set against the sum and, as the hon. Gentleman says, a repayment of the balance of £5 10s. will soon be made. I am sure that this is the right way to deal with this matter, and that the hon. Gentleman can feel satisfied.