§ 3.5 p.m.
§ LORD WILLIAMS OF BARNBURGHMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government if they will explain why appeals against income tax assessments by the Inland Revenue, dating back five, ten or fifteen years, are delayed so long before reaching the High Court; and whether the appellant has any means of expediting these long drawn out proceedings.]
§ THE MINISTER WITHOUT PORTFOLIO (THE EARL OF DUNDEE)My Lords, the time taken for income tax appeals to reach the High Court may be unavoidably prolonged for a variety of reasons, though a period as long as ten or fifteen years would be uncommon. The noble Lord will appreciate that before a case goes to the High Court it has been heard by Appeal Commissioners, and before that stage is reached considerable correspondence and discussion may be necessary with a view to establishing the facts, clarifying the points at issue and exploring the possibilities of agreement. If the noble Lord has a specific case in mind in which he considers that there has been unreasonable delay, I should be glad to look into it if he will send me the details.
§ LORD WILLIAMS OF BARNBURGHMy Lords, I thank the noble Earl for replying to this Question, but I cannot say that I am very happy with the reply. Is the noble Earl not aware that there 1236 are cases where proceedings have been held up for five years, ten years or over ten years simply because the assessment has been based upon some estimate for which no details are available? When such disagreement occurs and there is no likelihood of an agreement, does he not think the Inland Revenue Department might speed up these proceedings and so avoid delays of the length of time to which I have referred?
§ THE EARL OF DUNDEEMy Lords, the Inland Revenue officers are always anxious to avoid any delay that is avoidable. I think that perhaps shortage of staff is part of the trouble. The noble Lord may have noticed that at the Annual Conference of the Inland Revenue Staff in Lancashire this week the President stated:
Income tax officials are undoubtedly among the most hardworked and harassed people in Britain today;and that because of staff shortages they werenearing the point of exhaustion in the world's greatest paper chase.
§ LORD WILLIAMS OF BARNBURGHMy Lords, the noble Earl will be aware that my sympathy must be with the Inland Revenue officials if it is merely a question of shortage of staff. I will, however, try to provide the noble Earl with a specific case, as an example of what ought not to happen.
LORD REAMy Lords, would the noble Earl agree that the Statute of Limitations might be applied to these cases and that any claim which is not settled within six years might be annulled?
§ THE EARL OF DUNDEEMy Lords, I think it is often the fault not of the Inland Revenue officials but of the taxpayer for not giving the necessary information at the proper time. In 1959 I myself received a most courteous letter from the income tax inspector requiring me to furnish him with particulars of my income from literary fees in the year 1956, three years before. I replied that I was encouraged to hear that any literary effort of mine should ever have been thought good enough to earn a fee. I begged to be informed of the nature of the publication and the name of the publishers. We are still corresponding on the matter—
§ THE EARL OF DUNDEE—at intervals of about six months, and I am still hoping to find out who was kind enough in 1956 to pay me a literary fee, and what reason could possibly have induced him to do so.
§ LORD MORRISON OF LAMBETHMy Lords, may I ask the noble Earl whether he is aware that all of us have sympathy with the Inland Revenue staff—they have a hard life—but that we also have sympathy with ourselves and others, as taxpayers. Can he do anything to persuade the Treasury and the Commissioners of Inland Revenue to assess us at one blow and demand what they want at one blow, instead of sending in demand notes for tax at periodical intervals, so that we are spreading instalments and we never know when they are finished, just as the noble Earl did not know when he had finished, and does not even yet know? Could the noble Earl not do something which would simplfy the job of the staff of the Inland Revenue, so that they could tell us where we are, Instead of one sailing along thinking one is better off than one is, and then getting a supplementary demand, or a series of supplementary demands, for substantial sums? That would be a useful thing. Would the noble Earl see what he can do?
§ THE EARL OF DUNDEEMy Lords, I am grateful to the noble Lord, and I sympathise with him very much. It is true that we sometimes never know when the Inland Revenue have finished; but sometimes they never know when we have finished.
§ LORD LAWSONMy Lords, does the noble Earl not agree that this is a just punishment for inflicting such books upon the public?
§ THE EARL OF DUNDEEI think the noble Lord is probably right; but I do not know what books I have ever written.
§ BARONESS WOOTTON OF ABINGERMy Lords, does the noble Earl consider that if he were to publish his correspondence with the tax inspector he might then be able to get a fee for the publication?
§ THE EARL OF DUNDEEAccording to the inspector, I have received a fee. I was rather hoping that I might get in touch with the person who had paid me, so that the same thing might happen again.
§ LORD STONHAMMy Lords, how can the noble Earl expect the Commissioners to tell him where he is, if he himself does not know where he is?
§ BARONESS SUMMERSKILLMay I suggest to the noble Earl that he would get a bigger fee if he published his diary?
THE LORD PRESIDENT OF THE COUNCIL AND MINISTER FOR SCIENCE (VISCOUNT HAIL SHAM)Read it in the Evening Standard !
§ THE EARL OF DUNDEEMy Lords, I have always tried to keep a diary, but I have never succeeded, I am afraid, so the noble Lady need not worry.