§ Mr. Lathamasked the Chancellor of the Exchequer why Her Majesty's Customs and Excise have been pressing Direct Cosmetics Ltd of Oakham to pay a sum in respect of value added tax while the sum in question is the subject of proceedings before a value added tax tribunal and the European Court; and whether he will give an assurance that no enforcement action will be taken in advance of a decision by the European Court.
§ Mr. BrookeParliament has empowered the Commissioners of Customs and Excise to collect value added tax due to the Crown. If tax is found to be due, but unpaid, the commissioners have a duty to secure it by means of an assessment. Time limits are laid down in law within which such assessments must be made. Direct 79W Cosmetics Ltd is receiving money in respect of tax from purchasers of its goods but is refusing to pay it to HM Customs and Excise. Should the company continue to refuse to pay the tax, the commissioners must consider what steps should be taken to secure it.
§ Mr. Lathamasked the Chancellor of the Exchequer whether the letters sent to Mr. W. F. Doody of Direct Cosmetics Ltd. of Oakham dated 28 April and 20 May by Mr. G. R. Burgess of Her Majesty's Customs and Excise advising Mr. Doody to take Her Majesty's Customs and Excise to Court were sent with his authority; and on how many other occasions in 1986 officials of Her Majesty's Customs and Excise have written to taxpayers advising them to undertake litigation against Her Majesty's Government.
§ Mr. BrookeI shall let my hon. Friend have a reply as soon as possible.