§ Mr. Paul Deanasked the Chancellor of the Exchequer whether he will publish the list of questions which Inland Revenue staff are recommended to ask self-employed people about their domestic expenditure.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report 11th May 1978; Vol. 949, c. 587], gave the following answer:
Inspectors of taxes are advised in their training what kinds of question to ask should it be necessary to inquire about the taxpayer's private expenditure, but there is no list of recommended questions on this subject.
§ Mr. Paul Deanasked the Chancellor of the Exchequer by what authority the Inland Revenue is empowered to ask tax paying self-employed people detailed questions about their personal expenditure and that of their families.
74Wthe hon. Member for Blaby, Official Report, 8th May, columns 359–60, so as to include an additional column showing the percentage paid in tax and national insurance contributions of the relevant 1978–79 incomes on the assumption that the basic rate of income tax is 33 per cent.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 12th May 1978], gave the following answer:
The figures are as follows:
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 11th May 1978; Vol. 949, c. 587], gave the following answer:
Under Section 29, Taxes Management Act 1970, an inspector is required to be satisfied that a return under the Taxes Act affords correct and complete information concerning profits in respect of which tax is chargeable if he is to make an assessment in accordance with that return. If the inspector is dissatisfied he may make an assessment to tax to the best of his judgment. In order to satisfy himself, an inspector may have to ask questions.
§ Mr. Paul Deanasked the Chancellor of the Exchequer what items of personal and family expenditure are taken into account in assessing a self-employed person's tax liability.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 11th May 1978; Vol. 949, c. 587], gave the following answer:
If the books or records of a self-employed person are inadequate or incorrect, the only way to calculate the profits of the business may be to consider 75W what the taxpayer has spent during the year plus what he has saved. This involves in some cases asking detailed questions about private expenditure.