§ Mr. Meacherasked the Chancellor of the Exchequer what are the rules covering the collection of arrears of tax which appear to be irrecoverable, according to the various classifications under which arrears are placed.
§ Mr. Patrick JenkinIrrecoverable arrears of tax are classified in the Annual Reports of the Comptroller and Auditor General on the Inland Revenue Appropriation Accounts under four heads—insolvency, composition settlements, realisation of securities, and taxpayer gone abroad or untraceable, etc. The first and last heads need no explanation. Composition settlements are those in which the Revenue accepts a sum which is less than the full liability but not less than the amount which it is estimated would be recoverable by legal process. Realisation of securities represents the difference between the nominal value of securities accepted in payment of tax under Section 417, Income and Corporation Taxes Act, 1970, and the amount realised on sale.