HL Deb 08 February 1968 vol 288 cc1268-9
LORD ELTON

My Lords, I beg leave to ask the second Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether, in view of the report by the Comptroller and Auditor General that the Inland Revenue has probably lost up to £28,000,000 owing to fraudulent claims for tax reliefs made by immigrants in respect of non-existent dependants, they expect to be able to take effective steps to put an end to these practices.]

LORD BESWICK

My Lords, my right honourable friend the Chancellor of the Exchequer is considering this problem.

LORD ELTON

My Lords, while thanking the noble Lord for that lengthy Answer, may I first ask whether he can confirm the approximate figures quoted in the Question and, if so, specify what period of time they cover? Secondly, may I ask whether the Government consider it possible for any Indian and Pakistani immigrants to obtain in their own countries supporting documents, which can be submitted and accepted with confidence as reliable evidence by our Inland Revenue authorities? if that is possible, why have not all immigrants long ago been warned that, unless they can produce such documents, their claims will not be allowed? If it is not possible, must we not expect much larger losses to the Revenue than we ought to tolerate?

LORD BESWICK

My Lords, the estimated loss is of the order of £5 million to £7 million a year, and this has been going on for about four years As for the possibility of checking the validity of these claims, it is possible to call for supporting evidence. The difficulty is to ensure that it is genuine.

LORD DERWENT

My Lords, is it not quite clear by now that this is an impossible task for the Inland Revenue, who are already overworked? As the Chancellor of the Exchequer is considering the matter, would he also consider whether the time has not now arrived when dependants of immigrants should not qualify for tax relief unless the dependants are in this country?

LORD BESWICK

My Lords, I quite agree with the noble Lord that the Inland Revenue authorities have a very difficult task on their hands if they are going to check on all the alleged dependants for whom tax relief is claimed. The other point which the noble Lord made is one which will, of course, have to be taken into consideration.