§ Mr. Goodhartasked the Chancellor of the Exchequer how many applications for an income tax allowance for children resident abroad were refused in 1969, 1970, 1971, 1972, 1973, 1974, 1975 and 1976.
§ Mr. Denzil DaviesI regret that this information is not available.
§ Mr. Goodhartasked the Chancellor of the Exchequer whether British passport holders working and paying tax in India, Pakistan, Bangladesh and Sri Lanka receive income tax allowances for children resident in the United Kingdom.
§ Mr. Denzil DaviesThey do, in certain circumstances, in Pakistan and Sri Lanka. I understand that there are no income tax child allowances in India and Bangladesh.
§ Mr. Goodhartasked the Chancellor of the Exchequer what changes there have been in the checks made on claims for personal reliefs from income tax in respect of children resident overseas since the publication of the Treasury Minute of 4th November 1968, which was commented on in the Third Report from the Committee of Public Accounts Session 1967–68.
§ Mr. Denzil DaviesI shall let the hon. Member have a reply as soon as possible.
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§ Mr. Goodhartasked the Chancellor of the Exchequer with how many countries the United Kingdom has signed bilateral or multilateral tax agreements which provide for income tax allowances in respect of children resident in the United Kingdom for British passport holders working and paying tax overseas.
§ Mr. Denzil DaviesIn virtually all our tax treaties United Kingdom nationals are guaranteed—on a reciprocal basis—the same tax treatment in the treaty-partner country as that country gives to its own nationals. Information is not, however, readily available about how many of our treaty-partner countries do grant tax allowances to their nationals for children who are not resident there.
§ Mr. Goodhartasked the Chancellor of the Exchequer what regular detailed checks, similar to the pilot scheme started in April 1966, have been made since that date to check upon false claims for personal reliefs from income tax made for children resident overseas.
§ Mr. Denzil DaviesI shall let the hon. Member have a reply as soon as possible.
§ Mr. Goodhartasked the Chancellor of the Exchequer whether he will list the adjustments made in comparing the total number of child tax allowances with the number of family allowances when preparing the estimate that income tax allowances were payable for 500,000 children resident overseas; and what adjustment was made to cover the number of first or single children resident overseas for whom no family allowance has been payable.
§ Mr. Denzil DaviesAdjustments were made to allow for the following factors:
- 1. Child tax allowances can be claimed in respect of students aged 19 and over provided they are in full-time education, but family allowance ceases at age 19.
- 2. Above certain income levels it is to the taxpayer's advantage to forgo family allowance.
- 3. For families with only one child—so that no family allowance is payable—the assumption was made that the proportion of non-resident children was the same as the estimated proportion for larger families.
- 4. Some of the families with two child tax allowances and no family allowance may have only one child resident overseas and so not receive family allowance for the other
686 child even if resident in the United Kingdom. - 5. For families with more than two children receipt of family allowance does not necessarily preclude the possibility of one or more non-resident children in the family.
The information is not sufficiently accurate to justify publication of the individual adjustments made in respect of each of these items. The final figure of 500,000 is thought to he of the right order of magnitude but, as my hon. Friend the Financial Secretary's earlier reply indicated, it is not possible to make a precise estimate.
§ Mr. Goodhartasked the Chancellor of the Exchequer what are the detailed checks on false claims for personal reliefs from income tax for children resident overseas, which were introduced following the Third Report from the Committee of Public Accounts Session 1967–68 which were referred to in the Treasury Minute of 4th November 1968.
§ Mr. Denzil DaviesI shall let the hon. Member have a reply as soon as possible.