§ 16. Mr. Corbettasked the Chancellor of the Exchequer how much income tax due to be paid but not remitted was recovered by the Inland Revenue as a result of (a) negotiation and (b) prosecution in each of the last three tax years.
§ Mr. Robert SheldonInformation is not available as to the amounts of income tax overdue and recovered without the need for enforcement action. The amounts for which legal proceedings were commenced, including corporation tax, capital gain tax and surtax as well as income tax, were approximately as follows: year to October 1973, £19 million; 1974, £25 million; 1975, £40 million.
§ Mr. CorbettWill my hon. Friend look again al the collection and compilation of these figures? Is not it grossly unfair that when millions of working people regularly pay their taxes through PAYE 651 there are these apparent loopholes in the general tax system?
§ Mr. SheldonMy hon. Friend is quite right in the comparison that he makes between the various parts of our tax and social security systems, but at the same time it must be pointed out that we are never in a position to know the levels of evasion at any time. We can only ensure that the arrangements we have made for the collection of tax are as rigorous as can be devised, and if my hon. Friend has any comments, or contributions, to make, I shall be delighted to hear from him.
§ Mr. Cyril SmithHas the Minister read the article in The Times today by Sir William Pile, in which it is alleged that there is to be a special clamp-down on small companies in the collection of tax? Is there to be discrimination between large companies and small ones? Is the Minister aware that, for example, in my constituency last week the bailiffs were sent in to a company which employs 20 people, and whose tax was only seven days overdue?
§ Mr. SheldonI am always pleased to hear from the hon. Gentleman concerning his constituents. He writes to me regularly and I am always pleased to assist whenever I can. But I can state quite categorically that it is not the Government's intention to do anything other than assist small companies and to help to solve their problems. If there are certain difficulties in the income tax system I am always prepared to consider them, but I must make it clear that I have no information that these matters bite more harshly on small companies than on others, for the reasons that I have indicated.