HC Deb 14 June 1988 vol 135 cc145-7W
Mr. Madden

To ask the Chancellor of the Exchequer what is his estimate of the total loss of revenue from income tax evasion in each of the last five years, to date; what specific action he is taking to reduce the loss of revenue from income tax evasion; and if he will make a statement.

Mr. Norman Lamont

[holding answer 10 June 1988]It is not possible to form a reliable estimate of revenue lost through tax evasion.

Since 1979 there has been a steady increase in the resources devoted by the Inland Revenue to investigations.

Mr. Norman Lamont

[holding answer 10 June 1988]Provisional estimates are given in the table. These are based on projections to 1987–88 of information in the 1985–86 survey of personal incomes and the 1985 family expenditure survey. The estimates include mortgages formerly under the option mortgage scheme which are now subsumed within MIRAS.

This is reflected in the increase in the yield from compliance work over the periodfrom £111 million in the year to 31 October 1979 to £741 million in the year to 31 March 1987.

Mr. Madden

To ask the Chancellor of the Exchequer how many individuals, in each of the last five years to date, have been charged with offences related to the non-payment or under-payment of income tax; how many such individuals have been prosecuted for such offences; what was the minimum, average and maximum loss of revenue where prosecution took place; how many individuals, found guilty of tax offences, were fined or sentenced to a term of imprisonment; and what was the minimum, average and maximum fine and term of imprisonment.

Mr. Norman Lamont

[holding answer 10 June 1988]The charge is an integral part of the summons or warrant, which is in turn a part of the prosecution process. It follows that the number of people charged and the number of people prosecuted are the same. However, for various reasons, some prosecutions do not run their full course.

The number of people prosecuted to trial stage for offences related to tax evasion are as follows (prosecutions not completed are shown in brackets):

Number
1983–84 159(17)
1984–85 238 (14)
1985–86 320 (9)
1986–87 325 (8)
1987–88 210 (2)

The other information requested could not be provided except at disproportionate cost. But over the period the amounts of tax at stake varied from £90 to £1.7 million; fines ranged from £50 to £60,000; and sentences of actual imprisonment (ignoring suspended sentences) ranged from 1 day to 8 years.

Mr. McAllion

To ask the Chancellor of the Exchequer if he will estimate how much revenue has been forgone by the Treasury due to tax evasion for each year since 1979, in cash and real terms, at 1987–88 prices.

Mr. Norman Lamont

[holding answer 9 June 1988]It is not possible to form a reliable estimate of revenue lost through tax evasion.