§ Sir W. Robson Brownasked the Chancellor of the Exchequer how much time is normally allowed for the payment of tax under Pay As You Earn; in how many cases of firms becoming bankrupt a large or major part of the deficiency is represented by liability for tax under Pay As You Earn; what is the estimated annual loss to the Revenue of such defections; and whether he is satisfied with the present working of the system.
§ Sir E. BoyleUnder the P.A.Y.E. Regulations the tax must be paid to the collector of taxes within 14 days of the end of the month in which it was deductible. If the employer does not pay promptly the collector presses for payment and, if necessary, proceedings are taken to recover the tax.
The information asked for in the second part of the Question is not available, but in the year ended 30th September, 1960, £158,000 P.A.Y.E. tax due from employers was remitted on grounds 55W of insolvency. This compares with a total P.A.Y.E. yield over £1,000 million. I am, in general, satisfied with the working of the system.