§ Lord Russell-Johnstonasked Her Majesty's Government:
Whether the self-assessment tax system is functioning adequately. [HL4142]
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§ Lord McIntosh of HaringeyYes. The self-assessment tax system is functioning adequately.
Over the past five years, around 90 per cent of self-assessment tax returns have been received by the due date. Under the previous system only around 50 per cent of the information needed was received by the date the Inland Revenue had to make assessments and the outstanding information had to be pursued through a complex process of estimated assessments, appeals and postponement applications.
For the tax year 2000–01 (returns due by 31 January 2002) 90.6 per cent were received on time.
The computer systems used for processing tax returns have proved to be very robust. Over the past 12 months we have averaged 99.63 per cent system availability against a target of 98.5 per cent.
The Treasury Sub-Committee is currently carrying out an inquiry into self-assessment "to examine the objectives, operation and achievements of Self Assessment".
§ Lord Russell-Johnstonasked Her Majesty's Government:
How many people in the last year for which statistics are available had to pay fines for late submission of tax returns under the self-assessment system. [HL4143]
§ Lord McIntosh of HaringeyThe table shows the number of penalties raised by the Inland Revenue from late filing penalties on tax returns and the total of penalties paid in the last full year for which statistics are available. There is no information available about the number of people fined or the number of people who have paid fines.
The Inland Revenue accounts for its receipts in accounts years running from November to October £ Accounts year Penalties raised Penalties paid 2000 1,184,000 32,960,556
§ Lord Russell-Johnstonasked Her Majesty's Government:
By how much the self-assessment system has decreased or increased the cost of the Inland Revenue. [HL4144]
§ Lord McIntosh of HaringeyThe introduction of self-assessment was a 15-year project involving investment of £839 million for the Inland Revenue which should result in net administrative savings of £500 million by 2007–08.
§ Lord Russell-Johnstonasked Her Majesty's Government:
Whether the tax system deals fairly with both rich people and poor people; and whether they have studied the examination of these questions in the Guardian newspaper of 11 April. [HL4145]
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§ Lord McIntosh of HaringeyWhilst recognising the right of businesses and individuals to manage their tax affairs efficiently, the Government are committed to ensuring a fairer tax system by countering abuses and contrived avoidance schemes. Each Budget since 1997 has included measures to secure the tax base and combat avoidance by blocking tax loopholes, including those used by wealthy individuals. We will continue to stop abuses of the tax system which benefit a small minority at the expense of taxpayers generally.
The Chancellor of the Exchequer in his 2002 Budget speech reiterated this commitment when he said that, "to ensure fairness for taxpayers and businesses, we must act swiftly to close tax loopholes and be vigilant against tax avoidance". He also announced that the Government are reviewing the complex rules of residence and domicile.
The Government are aware of recent press interest.