HC Deb 08 August 1972 vol 842 cc338-9W
45. Mr. Joel Barnett

asked the Chancellor of the Exchequer what information he has received concerning a black market in the exemption certificates issued to building contractors by Her Majesty's inspectors of taxes; and if he will make a statement.

Mr. Higgins

The Inland Revenue has received some information on this subject which is being followed up. It is too early to make any statement on the results. The main checks on the misuse of certificates are only now coming into operation, and may lead to the prosecution of offenders.

46. Mr. Joel Barnett

asked the Chancellor of the Exchequer what information he has received concerned with evasion of income and corporation tax by building contractors through the formation of limited companies; if he will take steps to ensure that such newly formed companies are also required to obtain exemption certificates from Her Majesty's inspectors of taxes; and if he will make a statement.

Mr. Higgins

Some of the comments made on this subject appear exaggerated, and I do not think that I should be justified at present in imposing on industry the substantial burden of requiring exemption certificates from companies. A sub-contractor who becomes a director or employee of a company is, of course, within the PAYE system.