§ Mr. Sternasked the Chancellor of the Exchequer if the Board of Inland Revenue has any plans to enter into discussions with the Building Societies Association as to the administrative and other implications of applying the provisions of section 17, Taxes Management Act 1970, to building societies.
§ Mr. Ian StewartThere are no such plans at present.
§ Mr. SternDoes my hon. Friend agree that the application of section 17 to the banks has led to the recovery of substantial amounts of income tax on undeclared income and the recovery of additional tax after the disclosure of the capital behind that income? Does he agree that, if the Inland Revenue were encouraged to extend such inquiries under section 17 to building societies, further substantial tax yields could arise?
§ Mr. StewartI accept my hon. Friend's analysis of the application of section 17 to the banks. There are no plans to extend it to building societies at present. We aim to keep changes relating to building socieites to a minimum in this year's Finance Bill, but we shall be considering the implications of the composite rate in that case, and information regarding interest paid will be included.