§ Mr. David Mitchellasked the Chancellor of the Exchequer whether Her Majesty's Customs and Excise are now sending out provisional VAT assessments to traders based on stereotyped profit ratios which may bear no relation to the precise trading circumstances of the trader upon whom the assessment is levied.
§ Mr. Robert SheldonThe Commissioners of Customs and Excise issue VAT assessments where persons fail to make tax returns or where returns appear to be incomplete or incorrect. Provisional assessments are issued only to traders who have failed to make returns and are withdrawn if satisfactory returns are subsequently furnished.
Assessments have to be made to the best of the commissioners' judgment and are based on the information available about traders' tax liabilities. They are not based on stereotyped profit ratios.