§ Mr. Rookerasked the Chancellor of the Exchequer (1) why, of the £744.7 million income tax outstanding at 31st October 1975, only £333 million is ultimately recoverable;
(2) why, of the £666.6 million corporation tax outstanding at 31st October 1975, only £353 million is ultimately recoverable;
(3) why, of the £168.7 million capital gains tax outstanding on 31st October 1975, only £101 million is ultimately recoverable;
(4) why, of the £143.9 million surtax outstanding at 25th June 1976, only £80 million is ultimately recoverable.
§ Mr. Robert SheldonThe amount of each tax shown as outstanding is the total for which demands have been issued and takes no account of adjustments which may have to be made in individual cases. It includes tax which has been assessed on an estimated basis but which may eventually be reduced as the result of an appeal. The amount shown as ultimately recoverable is in each case an estimate based on past trends of what is likely to be ultimately recovered.
§ Mr. Rookerasked the Chancellor of the Exchequer (1) what action he is taking to recover £37.4 million outstanding in VAT for the financial year 1974–75;
(2) what action he is taking to recover £76.4 million outstanding in VAT for the financial year 1975–76.
§ Mr. Robert SheldonCustoms and Excise are pursuing defaulters, making use of distraint and civil recovery procedures where appropriate.
Of the £37.4 million outstanding from 1974–75 at 30th September 1976, £7 million related to traders who are insolvent; 189W and of the £76.4 million outstanding from 1975–76, £16.5 million related to traders who are insolvent. In these cases the only form of recovery is by making a claim in the insolvency.