§ Mr. David Mitchellasked the Chancellor of the Exchequer under what circumstances a building contractor who inadvertently fails to make the requisite deduction on moneys he pays to a non- 532W certified sub-contractor will be liable to the Inland Revenue for that deduction when the sub-contractor has already declared the amount concerned and paid the appropriate amount of tax thereon.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 14th December 1978], gave the following reply
A contractor remains liable to account to the Revenue for sums which he should have deducted from payments to uncertified sub-contractors. A contractor may, however, be relieved of this liability if he can satisfy the Revenue that, although he failed to make the deductions, he acted in good faith and took reasonable care to comply with the rules of the scheme.
If the hon. Gentleman has a particular case in mind, I would be happy to look at it.
§ Mr. David Mitchellasked the Chancellor of the Exchequer how many assessments raised by the Revenue in respect of section 38 of the Finance Act (No. 2) 1975 have been or are in the process of being taken before the general and special commissioners, respectively.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 14th December 1978], gave the following reply
No central record is available of appeal hearings before the general or special commissioners.
§ Mr. David Mitchellasked the Chancellor of the Exchequer why income otherwise regarded as taxable under Schedule D Case II can be taxed under Schedule E purely because it has been received through an agency as defined in section 38 F.75, in circumstances in which the taxpayer suffers an added burden of having to prove exclusively in addition to wholly and necessarily criteria of allowability.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 14th December 1978], gave the following reply
The provisions of section 38 Finance (No. 2) Act 1975 were designed to ensure that temporary agency workers who work under conditions which are typical of employment, rather than self-employment, should be taxed under Schedule E. It follows that these workers are subject to 533W the Schedule E expenses rules, so that in order to be allowable their expenses must be shown to be wholly, necessarily and exclusively incurred in the performance of their duties.
§ Mr. David Mitchellasked the Chancellor of the Exchequer whether he will seek to ensure that efforts are not made to collect the same tax twice in respect of any irregularities in the operation of section 38 of the Finance Act 1975; and if, or when, such double payment has been received then prompt repayment will be made.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 14th December 1978], gave the following reply
I am not clear about the circumstances in which the hon. Member considers that there might be double payment. If he has a particular case in mind and will write to me, I shall be happy to examine it.
§ Mr. David Mitchellasked the Chancellor of the Exchequer how many investigations were initiated by the Revenue into possible failure to comply with section 38 of the Finance Act (No. 2) 1975; how many assessments were raised as a result thereof; and how many such assessments have subsequently been agreed at a reduced figure from that originally raised.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 14th December 1978], gave the following reply
I regret that no records are available of the number of such investigations nor of subsequent assessments.
§ Mr. David Mitchellasked the Chancellor of the Exchequer if he remains satisfied with the working of section 38 of the Finance Act (No. 2) 1975.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 14th December 1978], gave the following reply
Yes.