§ Mr. Wakehamasked the Chancellor of the Exchequer whether Fleet Street casual workers are employees or self-employed for taxation purposes; and if he has any plans to reclassify them as in the case of the divers.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 19 March 1979; Vol. 964, c. 441], gave the following information:
Fleet Street casual workers are employees within the charge to tax under schedule E. There are no plans to provide otherwise.
§ Mr. Wakehamasked the Chancellor of the Exchequer what discussions were held with the National Society of Operative Printers and Assistants, the National Graphical Association, the Society of Graphical and Allied Trades, the Newspaper Proprietors' Association, the Inland Revenue Staff Federation and the Inland Revenue prior to the announcement of the tax amnesty for Fleet Street casual workers.
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§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 19 March 1979; Vol. 964, c. 441], gave the following information:
During its lengthy investigation into tax irregularities amongst certain casual workers in Fleet Street, the Inland Revenue had several discussions with the three unions concerned and the newspaper proprietors. The Inland Revenue Staff Federation was not involved.
§ Mr. Wakehamasked the Chancellor of the Exchequer under what section of what Act the Inland Revenue is empowered to grant tax amnesties.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 19 March 1979; Vol. 964, c. 442], gave the following information:
I refer the hon. Member to the reply that I gave to the hon. Member for Worthing (Mr. Higgins) on 13 March.—[Vol. 964, c. 149.]
§ Mr. Wakehamasked the Chancellor of the Exchequer whether he has plans to grant tax amnesties to groups of workers other than the Fleet Street casuals.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 19 March 1979; Vol. 964, c. 442], gave the following information:
I refer the hon. Member to the reply given to the hon. Member for Burton (Mr. Lawrence) on 16 March.
§ Mr. Wakehamasked the Chancellor of the Exchequer whether he will take steps to recover tax owed by Fleet Street casual workers from the newspaper proprietors.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 19 March 1979; Vol. 964, c. 442], gave the following information:
No. Under Regulation 50 of the Income Tax (Employments) Regulations 1973, where, as in the case of the Fleet Street casual workers, the Inland Revenue is of the opinion that the normal operation of PAYE is impracticable, the other regulations providing for recovery of tax from the employer do not apply.
§ Mr. Wakehamasked the Chancellor of the Exchequer under what sections of the Taxes Acts the Inland Revenue was 567W acting in granting a tax amnesty to casual workers of Fleet Street newspapers.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 19 March 1979; Vol. 964, c. 442], gave the following information:
I refer the hon. Member to the reply that I gave to the hon. Member for Worthing (Mr. Higgins) on 13 March.—[Vol. 964, c. 149.]
§ Mr. Gorstasked the Chancellor of the Exchequer whether the tax amnesty recently granted by the Inland Revenue to casual workers in Fleet Street was negotiated with a trade union acting on behalf of its members; if so, with which trade union or unions; whether any casual workers not belonging to a trade union are involved in the amnesty; and how many casual workers are estimated to be covered by the amnesty.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 19 March 1979; Vol. 964, c. 442], gave the following information:
The limited and conditional offer to casual workers in Fleet Street, to which the hon. Member refers, was not negotiated with a trade union. The employers and the unions were informed of its terms in the course of discussions about the new tax arrangements. Only trade union members are able to work in the Fleet Street printing industry. As it is not known how many casual workers have evaded tax in the past, no estimate can be made of the number covered by the offer.
§ Mr. Gorstasked the Chancellor of the Exchequer to what extent Ministers were involved in, or consulted about, the discussions which led to the Inland Revenue granting a tax amnesty to casual workers in Fleet Street.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 19 March 1979; Vol. 964, c. 442], gave the following information:
Ministers were informed about, but not involved in, the discussions leading to the introduction of the new tax arrangements in Fleet Street.
§ Mr. Gorstasked the Chancellor of the Exchequer what assurances have been 568W given to the Inland Revenue that there will be no further fraudulent tax practices by casual workers in Fleet Street; in what form such assurances have been given; and what steps his Department is taking to ensure that no large group of taxpayers organises itself for the purpose of defrauding the Inland Revenue.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 19 March 1979; Vol. 964, c. 443], gave the following information:
No such assurances have been or could be given. I can however, assure the hon. Member that the Inland Revenue will continue to combat evasion in whatever form it takes.
§ Mr. Gorstasked the Chancellor of the Exchequer what is the estimated loss of revenue that is likely to result from the tax amnesty granted by the Inland Revenue to casual workers in Fleet Street; and what was the estimated cost of recovering the unpaid arrears of tax if they had not been the subject of the amnesty.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 19 March 1979; Vol. 964, c. 443], gave the following information:
I do not consider that the offer made by the Inland Revenue to which the hon. Member refers will result in any loss of tax, since in my view no other action was available that would have resulted in more tax being recovered. No reliable estimate can be made of the administrative costs that might have been incurred in attempting to pursue possible liabilities for years before 1977–78.
§ Mr. Gorstasked the Chancellor of the Exchequer whether the tax amnesty recently granted by the Inland Revenue to casual workers in Fleet Street has any precedent (a) when there has been prima facie evidence that a fraud has been perpetrated, (b) when the arrangement has been made between a trade union and the Inland Revenue and (c) between the Inland Revenue and any other organisation; and on what previous occasions such arrangements have been made.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 19 March 1979; Vol. 964, c. 443], gave the following information:
569WThe situation in Fleet Street has no precise parallel, but the offer to casual workers is in accord with the general practice of the Board of Inland Revenue. Having regard to the board's responsibility for the care and management of the income tax limited, resources are not diverted into lengthy investigations of the past where it is likely that there would be serious problems in establishing that offences have been committed or in collecting the tax. The question of how far to pursue past tax liabilities in any particular case is finally determined by the circumstances of individual taxpayers whether employed or self-employed.
§ Mr. Gorstasked the Chancellor of the Exchequer if he will specify the section of the relevant statute under which the Inland Revenue has granted a tax amnesty to casual workers in Fleet Street who have fraudulently falsified their tax returns; whether the statute gives the Inland Revenue the discretion to ignore fraudulence; and whether it is the sole responsibility of the Inland Revenue to institute legal proceedings in matters of tax fraudulence or whether the agreement of other agencies is required.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 19 March 1979; Vol. 964, c. 443], gave the following information:
Responsibility for the care and management of the income tax is placed upon the Board of Inland Revenue by section 1 of the Taxes Management Act 1970. Decisions on whether to pursue particular tax liabilities, investigate possible tax offences and, in England and Wales, institute legal proceedings are taken solely by the board or its authorised officers having regard to that responsibility of its powers under sections 88 and 102 of the same Act.