Value Added Tax

HC Deb 27 October 1975 vol 898 cc347-8W

Mr. Lee

asked the Chancellor of the Exchequer how many prosecutions and how many civil lawsuits to date have been instituted by the Customs and Excise arising out of the rendering of incorrect returns made in respect of value added tax demands since the inception of this tax; in how many cases have such prosecutions and lawsuits been successful; in how many cases have they failed; and if he will make a statement

Mr. Robert Sheldon

The great bulk of prosecutions in connection with VAT have so far been in respect of failures to furnish returns. 59 such cases were heard in 1974 and a further 1,041 so far this year. In all these cases the prosecution succeeded. In addition the Commissioners of Customs and Excise have ordered proceedings in 72 cases involving tax evasion or false declarations. 15 of these cases have so far been heard in court and all have resulted in conviction.

Incorrect VAT returns are not normally the subject of civil proceedings, although civil proceedings are used in appropriate cases for recovery of unpaid tax.