§ Mrs. RocheTo ask the Chancellor of the Exchequer (1) if self-assessed taxpayers who are selected for random audit in 1997–98 will be told that they are being investigated for purely statistical reasons; [3111]
(2) how many random audits his Department plans to carry out in 1997–98 under self-assessment power S9A TMA 1970. [3112]
§ Mr. Jack[holding answer 12 November 1996]: No tax returns will be selected for inquiry purely for statistical reasons.
Most returns will be selected on the basis of an identified tax risk, but the Inland Revenue proposes to select approximately 10,000 tax returns for inquiry on a random basis during 1997–98, that is about 0.1 per cent. of all self-assessment returns. First and foremost, random inquiries will help to deter would-be tax evaders, who believe they might otherwise successfully cover their 311W tracks and so avoid selection for inquiry. They will also help the Department to identify new areas of high risk and indicate levels of compliance.
The Inland Revenue will not tell any taxpayer the basis on which his return has been chosen for inquiry, since to do so would undermine the effectiveness of this new power and could introduce unnecessary confrontation into inquiry work.
The Inland Revenue aims for high standards in its inquiry work and has published a new code of practice 11—"Enquiries into tax returns by local Tax offices"—explaining how this will be conducted under self-assessment.
§ Mrs. RocheTo ask the Chancellor of the Exchequer what steps the Inland Revenue is taking to ensure that queries about the self-assessment system are dealt with speedily. [3255]
§ Mr. Jack[holding answer 12 November 1996]: The Inland Revenue will seek to achieve the published standards of customer service for 1996–97 for all taxpayers including those affected by self-assessment.
The capacity of tax inquiry centres and switchboards has been reviewed and where appropriate enhanced. A helpline has been established to assist taxpayers outside normal working hours.
§ Mrs. RocheTo ask the Chancellor of the Exchequer how many staff the Inland Revenue had(a) in 1994 and (b) in each subsequent year; and what increases in staffing there will be to cover the period of the introduction of self-assessment. [3322]
§ Mr. Jack[holding answer 12 November 1996]:
- (a) At 1 April 1994 the Inland Revenue, excluding the Valuation Office Agency, had 58,569 staff in post;
- (b) The numbers for subsequent years are:
- April: 54,562
- April: 52,150
There will be no increase in staff numbers to cover the introduction of self-assessment, but measures have been taken to ensure that a higher level of customer service is available in a number of ways to help with any queries which may arise during the introductory period.