Tax Evasion and Avoidance (Hansard, 30 June 1976)

§ Mr. Lawson
asked the Chancellor of the Exchequer whether the Inland Revenue Inspectorate, or the Inquiry Branch, as a matter of policy have a system to find out how people appear to have acquired wealth when there is no obvious means of their having earned it through normal sources.

§ Mr. Robert Sheldon
An inspector of taxes would naturally consider whether some critical examination should be made of any case where there was an accretion of wealth apparently inconsistent with returns or accounts that had been supplied by the taxpayer. The 203W inspector's approach will depend largely on the facts of the particular case.

§ Mr. Frank Allaun
asked the Chancellor of the Exchequer if he will take steps to reduce tax evasion and avoidance by British individuals and companies operating through the Channel Islands and the Isle of Man.

§ Mr. Robert Sheldon
I am aware of the possible use of these islands for evasion and avoidance of tax. These questions are continuously under review and I will bring forward any necessary proposals at a suitable time. My hon. Friend will be aware that the current Finance Bill includes proposals designed

PROFITS AND OTHER INCOME AFTER DEDUCTING INTEREST AND TAX^*

£million

All Companies Industrial and Commercial Companies

Basis 1 Basis 2 Basis 3 Basis 1 Basis 2 Basis 3

1961 … … 7,647 3,526 2,647 3,452 3,331 2,467

1962 … … 3,449 3,339 2,397 3,250 3,140 2,215

1963 … … 4,127 3,990 2,990 3,921 3,784 2,803

1964 … … 4,739 4,501 3,429 4,527 4,289 3,238

1965 … … 5,051 4,795 3,625 4,804 4,548 3,404

1966 … … 4,781 4,479 3,204 4,532 4,230 2,985

1967 … … 4,582 4,433 3,108 4,304 4,155 2,865

1968 … … 5,173 4,698 3,284 4,861 4,386 3,014

1969 … … 5,192 4,594 3,032 4,920 4,322 2,810

1970 … … 5,183 4,275 2,499 4,813 3,905 2,192

1971 … … 5,948 5,082 3,044 5,409 4,543 2,584

1972 … … 7,155 6,069 3,771 6,481 5,395 3,195

1973 … … 10,374 7,772 5,112 9,479 6,877 4,345

1974 … … 11,469 6,573 3,283 10,584 5,688 2,561

1975 … … 12,331 8,325 4,035 11,279 7,273 3,313

^* Trading and non-trading income (see below) arising in the United Kingdom, plus income from abroad net of taxes paid abroad, less profits due abroad, less interest payments, less payments of United Kingdom taxes on income. Since the balance shown of income is before payment of dividends, the figures of tax payments deducted exclude the advance corporation tax associated with dividend payments after 6th April 1973. Trading and non-trading income is defined where trading profits are: Basis 1 before providing for depreciation and stock appreciation; 2 before providing for depreciation but after providing for stock appreciation; 3 after providing for depreciation, using the estimates of "capital consumption" in the national accounts and after providing for stock appreciation.

PROFITS AND OTHER INCOME AFTER DEDUCTING INTEREST AND TAX^*
£million
			All Companies	Industrial and Commercial Companies
			Basis 1	Basis 2	Basis 3	Basis 1	Basis 2	Basis 3
1961	…	…	7,647	3,526	2,647	3,452	3,331	2,467
1962	…	…	3,449	3,339	2,397	3,250	3,140	2,215
1963	…	…	4,127	3,990	2,990	3,921	3,784	2,803
1964	…	…	4,739	4,501	3,429	4,527	4,289	3,238
1965	…	…	5,051	4,795	3,625	4,804	4,548	3,404
1966	…	…	4,781	4,479	3,204	4,532	4,230	2,985
1967	…	…	4,582	4,433	3,108	4,304	4,155	2,865
1968	…	…	5,173	4,698	3,284	4,861	4,386	3,014
1969	…	…	5,192	4,594	3,032	4,920	4,322	2,810
1970	…	…	5,183	4,275	2,499	4,813	3,905	2,192
1971	…	…	5,948	5,082	3,044	5,409	4,543	2,584
1972	…	…	7,155	6,069	3,771	6,481	5,395	3,195
1973	…	…	10,374	7,772	5,112	9,479	6,877	4,345
1974	…	…	11,469	6,573	3,283	10,584	5,688	2,561
1975	…	…	12,331	8,325	4,035	11,279	7,273	3,313
^* Trading and non-trading income (see below) arising in the United Kingdom, plus income from abroad net of taxes paid abroad, less profits due abroad, less interest payments, less payments of United Kingdom taxes on income. Since the balance shown of income is before payment of dividends, the figures of tax payments deducted exclude the advance corporation tax associated with dividend payments after 6th April 1973. Trading and non-trading income is defined where trading profits are: Basis 1 before providing for depreciation and stock appreciation; 2 before providing for depreciation but after providing for stock appreciation; 3 after providing for depreciation, using the estimates of "capital consumption" in the national accounts and after providing for stock appreciation.