§ 4. Mr. Dubsasked the Chancellor of the Exchequer what was the average recovery in under-declared value added tax achieved in the most recent year by Customs and Excise control visits to large business organisations.
§ Mr. Peter ReesPrecise information is not readily obtainable. In broad terms, however, Customs and Excise identified, on average, about £1,000 additional VAT per control visit to the larger businesses in 1979, compared with an overall average of about £200.
§ Mr. DubsDoes not that figure show the incompetence of the Government's housekeeping? Does not the hon. and learned Gentleman agree that if Customs and Excise visits to large organisations can yield an income to the Revenue of £1,000 per visit it is the height of folly to cut staff, because the consequence will be a net loss of money?
§ Mr. ReesNo doubt the hon. Gentleman is in sympathy with the aspirations of the Society of Civil and 1057 Public Servants Although it is pressing for 1,000 extra VAT control officers, it recognises that, despite the moral justification for seeking to eliminate tax evasion completely, there must be a threshold on the level of control beyond which extra staff would be non-productive and uneconomic.