HC Deb 17 June 1976 vol 913 c229W
33. Mr. Dudley Smith

asked the Chancellor of the Exchequer if, in view of the hardship now being caused to small firms forced to pay VAT on bad debts, he will introduce some suitable relief measures to enable the partners in such firms concerned to: (a) remain solvent themselves and (b) avoid going to prison through failure to pay.

Mr. Denzil Davies

Except that there is no question of imprisonment for inability to pay VAT on a transaction which becomes a bad debt, there is nothing I can add to what my hon. Friend the Financial Secretary said on this subject in Committee on the Finance Bill on 11th May.