§ Mr. David Atkinson
asked the Chancellor of the Exchequer whether he is satisfied that section B of Customs and Excise press notice No. 602 dated 26 March is consistent with section 33 of the Finance Act 1972.
§ Mr. Peter Rees
Yes. Section B of Customs and Excise press notice No. 602 outlines the proposals for changes in the maximum penalty which can be imposed by a court for breaches of the regulations about the furnishing of VAT returns and the payment of tax when due. Proceedings taken in respect of such breaches of the regulations are not intended to, nor can they, recover a specific tax debt. Recovery of value added tax debts is a separate issue, which is dealt with in section 33(1) of the Finance Act 1972.