HC Deb 27 November 1996 vol 286 cc306-7W
Mr. Salmond

To ask the Chancellor of the Exchequer what plans he has to meet representatives of industry to discuss the implications of the High Court decision that Customs and Excise has been acting illegally in deferring payment on legitimate claims for backdate VAT; what alternative proposals he is considering to ensure that measures announced on 18 July meet the requirements of EU law; and if he will make a statement. [6074]

Mr. Oppenheim

[holding answer 26 November 1996]Customs and Excise has issued a business brief outlining its responses to the High Court's decision of 19 November on the judicial review cases. More generally, the House will soon have an opportunity of debating our proposals for the capping of refund claims. I am confident that the proposals that the House will consider meet the requirements of EU law.

Mr. Salmond

To ask the Chancellor of the Exchequer how many out of court settlements have been reached by HM Customs and Excise in cases involving the repayment of overpaid VAT since 18 July; and if he will make a statement. [5943]

Mr. Oppenheim

[holding answer 26 November 1996]A number of settlements have been reached where refund claims made before 18 July have been paid in full owing to undue delay on the part of Customs and Excise in dealing with such claims at the time. Figures are not held centrally of the number involved.

Mr. Salmond

To ask the Chancellor of the Exchequer if, following the decision by the High Court regarding backdated VAT, he will refund overpaid VAT to those not directly involved in the judgments for the period since 18 July; and if he will make a statement. [6075]

Mr. Oppenheim

[holding answer 26 November 1996]Arrangements have been put to make repayments, including to those who were not directly involved in the judgments. Local VAT offices have been given guidance about the order in which agreed claims are to be dealt with. Businesses to whom payments are made are being told that the amounts may be recovered if Parliament approves the necessary provisions in the course of the Budget debate.