HL Deb 12 February 1979 vol 398 cc969-70
Lord GRIDLEY

My 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 what action they are taking to prevent tax evasion by those who receive payment made notionally to "employees" in the newspaper industry who are retired or deceased or have never existed.

Lord JACQUES

My Lords, in the summer of last year, the Inland Revenue began an intensive investigation into the tax arrangements for casual workers in Fleet Street. It is hoped within the next month to introduce new procedures which should eliminate the tax irregularities.

Lord GRIDLEY

My Lords, while I thank the noble Lord for that Answer, may I ask whether it goes deep enough; and may I ask two further specific questions? Has it not been firmly established in Fleet Street that payments to casual labour were the responsibility of the unions or of the chapels who lodged such claims? Secondly, is it not true that in a number of cases claims were lodged and payments made up in respect of a number of claimants who were non-existent? In the circumstances, have investigations been carried out in order to be certain whether offences under the law have been committed, or would seem likely to have been committed, in these instances?

Lord JACQUES

My Lords, it is not always practical to deduct PAYE from casual earnings but there is a statutory duty to provide the Inland Revenue with the information that they need in order to follow up the matter. The key is the accuracy of the information; and that is what the new procedures take care of.

Lord PAGET of NORTHAMPTON

My Lords, can the noble Lord tell us in what capacity one taxes a non-existent taxpayer?

Lord JACQUES

My Lords, I have not mentioned non-existent taxpayers.

The Earl of LAUDERDALE

My Lords, can we take it from the noble Lord's reply that the Government admit that there is something going wrong here which they must investigate urgently?

Lord JACQUES

Yes, my Lords. There was perhaps an awareness that things were not quite right but there was nothing that could be said to amount to, say, a conspiracy.

Lord WYNNE-JONES

My Lords, will my noble friend confirm that maintaining by any devious method that others who were at one time on the establishment are kept there has always been a method used in any community to ensure that inadequate rations are brought up to the right level?

Lord JACQUES

My Lords, my experience has been that while methods are used, they are not devious methods. I would resist the use of devious methods if I were an employer.

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