HL Deb 10 February 1988 vol 493 cc204-5

2.55 p.m.

Lord Broxbourne

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

The Question was as follows:

To ask Her Majesty's Government whether they will seek to amend Section 29(5) of the Taxes Management Act 1970 by inserting after "person assessed", the words "save where to the knowledge of the inspector issuing the notice the person assessed has a professional adviser or agent to deal with tax matters, in which case service on such agent will constitute a sufficient compliance with this section".

Lord Young of Graffham

My Lords, no. Assessments need to be sent direct to taxpayers, even where an agent is acting, because the tax due is the personal liability of the individual, and taxpayers are informed of their right of appeal against the assessment.

Lord Broxbourne

My Lords, I thank my noble friend for the courtesy of his reply. However, does he appreciate that I cannot greet its content with unqualified rapture? Is it not illogical to insist on personal service on the taxpayer when the inspector knows that he can act only as a courier or post office? Would it not be more logical to amend the law so that these matters can be dealt with directly and ab initio by persons versed in the esoteric mysteries of taxation matters? This would have the additional advantage of leaving more time for the taxpayer to earn the money required for the taxation.

Lord Young of Graffham

My Lords, I am sure that my noble friend is more than interested to know what current demands are being made upon him by the tax man. Where authorised, the Inland Revenue will send copies of assessments to the professional adviser of the taxpayer. It seems to me that it would be dangerous if we had a system whereby at all times the taxpayer could be unaware of the demands upon him. After all, tax due is the liability of the taxpayer; the professional adviser is there to advise.

Lord Mishcon

My Lords, are there not some cases, of which the Minister is aware, where especially old people or those suffering from some illness are very upset at receiving demands which are very often in excess of what they should be? In those cases would it not be meritorious for the assessment to be sent to the professional representative, so that the taxpayer is not worried?

Lord Young of Graffham

My Lords, I cannot claim to be of an advanced age, but I must claim to be rather upset when I receive an assessment from the tax man. I would rather that it be sent direct to my adviser. However, I believe that in the end I should know about it. Of course, there are difficult circumstances, but perhaps I may suggest that those concerned should, first, authorise the tax man to send the assessment to their professional advisers and, secondly, send the envelope on to them unopened.

Lord Diamond

My Lords, what complaints has the Minister received from professional bodies against a system which has been carried on hitherto quite satisfactorily, as far as my professional memory carries?

Lord Young of Graffham

My Lords, Sperhaps I may tell the noble Lord, Lord Diamond, that to my knowledge no complaints have been received, but I shall certainly inquire.

Lord Bauer

My Lords, I should like to ask the Minister whether it can be arranged that copies of the demand notes are sent not only to the taxpayer but also to his or her professional adviser.

Lord Young of Graffham

My Lords, normally that is done, but it is a requirement that the taxpayer should authorise the inspector to send those demands.

Lord Broxbourne

My Lords, will my noble friend undertake to ensure that, if a request is made to the inspector, as suggested in his answer to the supplementary question from the noble Lord opposite, the inspector will not reply that he is inhibited from so doing by the statutory obligation placed on him by the income tax Act 1970?

Lord Young of Graffham

My Lords, my information is that the inspector is not so inhibited. I am concerned to think that he might be but I am told that, in fact, he can send a copy to the adviser provided he sends it to the taxpayer as well.