§ 10. Sir C. Osborneasked the Chancellor of the Exchequer what is his latest estimate of the total amount of business expenses allowed for taxation purposes per annum.
§ Mr. MaudlingThe total amount of the deductions for expenses under Schedule E is given annually in the Board of Inland Revenue's report. The figure for the year 1961–62 is provisionally estimated at about £235 million. This covers all deductions allowed to all Schedule E taxpayers.
§ Sir C. OsborneIf these expenses are being scandalously abused, ought they not to be investigated and stopped? If they are not being abused, ought not the attacks upon the people who use them to be stopped?
§ Mr. MaudlingAs I said, this figure covers all deductions of all Schedule E taxpayers. The information obtained under the special inquiry made on the new form P.11D about expenses and benefits of directors and senior employees is still being analysed. I have as yet seen no evidence of abuse.
Mr. J. T. PriceIs not the right hon. Gentleman aware that to all intelligent people it is quite apparent that this is one of the biggest rackets in the country? 1069 Will he take seriously the fact that the figures he has given to the House, which shocked the House, limited though they are, represent merely a small estimate of what is actually taking place because of the many unscrupulous devices employed by unscrupulous people to cover up what they are doing? Is this not a national disgrace which ought to be tackled by the Government?
§ Mr. MaudlingThat is the sort of wild allegation for which there is no evidence and which does no good to anyone.
§ Sir C. OsborneIn view of the unsatisfactory nature of the reply—I must put it in this way—I beg to give notice that I should like to raise this matter at the earliest opportunity.