§ Mr. John Pageasked the Chancellor of the Exchequer what action he proposes to take to stop the abuse brought to light by the Comptroller and Auditor General in his report for 1966–67 where false claims to personal reliefs from Income Tax are made by immigrants concerning fictitious dependants living abroad.
§ Mr. Harold LeverI am considering this problem.
Mr. Ted Fletcherasked the Chancellor of the Exchequer whether he is aware that outstanding Income Tax, that had been cancelled in 1939 when a person joined Her Majesty's forces, is now being deducted from post-war credits and what instructions he has issued to his staff on this matter.
§ Mr. Harold LeverI assume that my hon. Friend is referring to cancellations of tax for 1942–43 or any earlier year under the Income Tax (Offices and Employments) Act, 1944. Any cancellation of tax due for 1941–42, the first year of Post-War Credits, or for 1942–43, would reduce the credit otherwise due for that year. I would be glad to look into the facts of any particular case which my hon. Friend has in mind.
§ Sir C. Osborneasked the Chancellor of the Exchequer what is the estimated annual cost of reducing the standard rate of Income Tax from 8s. 3d. to 7s. 6d., 6s. 6d. and 5s., respectively.
§ Mr. Harold LeverIf the reductions were confined to the standard rate £204 million, £476 million and £1,042 million on the basis of the 1967–68 Budget estimates. The third figure assumes that the higher reduced rate of Income Tax (now 6s. Od. in the £) would be abolished.
§ Mrs. Ewingasked the Chancellor of the Exchequer what was the total cost to the Exchequer in the tax year 1966–67 of Income Tax rebates on interest paid on house mortgages; and how this cost 435W was distributed among England, Scotland and Wales.
§ Mr. Harold LeverThe cost for the whole of the United Kingdom was about £157 million, made up of about £ million for Northern Ireland, £145 million for England, £5 million for Scotland and £5 million for Wales.
§ Mrs. Ewingasked the Chancellor of the Exchequer what was the total cost to the Exchequer in the tax year 1966–67 of family allowances made on Income Tax assessments; and how this cost was distributed among Scotland, Wales and England.
§ Mr. Harold LeverFamily allowances are taxable income and not allowances given against tax assessments. If the hon. Lady will let me know which tax allowances she has in mind I will do my best to provide her with the information she desires.
§ Dr. David Kerrasked the Chancellor of the Exchequer what is the minimum size of an occupational group about which he will issue information about the group's Income Tax payments and what criteria he uses to establish this minimum size.
§ Mr. Harold LeverThe Inland Revenue publish no information about the Income Tax payments of occupational groups. In general assessments and payments of tax cannot be analysed by occupational group except where one or more individual groups can be identified fairly closely with an occupational group. In such a case the amount of detail published is generally governed by the industrial breakdown agreed with the F.B.I. (as it then was) in 1948. Figures for smaller groups would be published only with the direct consent of those groups or their representatives.