§ Mr. Dubsasked the Chancellor of the Exchequer how many prosecutions have been brought against taxpayers for making allegedly fraudulent claims for tax relief for dependent children overseas from 1 January 1978 to the latest convenient date; what were the countries in which the alleged dependent 214W children were resident; and what the results of such prosecutions have been.
§ Mr. Peter ReesIn the period from 1 January 1978 to 1 July 1980 there were nine prosecutions brought by the Inland Revenue in respect of false claims for tax relief for dependent children overseas; all nine resulted in a conviction. Fines totalling £2,100 and prison sentences, including suspended sentences, totalling six and a half years were imposed. The countries involved were Republic of Ireland (one case), India (one case), Pakistan (one case) and Bangladesh (six cases).
§ Mr. Dubsasked the Chancellor of the Exchequer how many wage earners with children living abroad were entitled to claim child tax allowances for the financial year 1979–80; how many will be for the year 1980–81; what is the estimated cost of these tax allowances; and what would be the cost if the parents were paid the same child benefit as parents with children living in the United Kingdom.
§ Mr. Peter ReesThe numbers entitled to the allowance cannot be calculated with accuracy. In 1978 it was estimated that perhaps 50,000 people might have been eligible in respect of some 150,000 children living abroad in 1978–79, but these figures were subject to a considerable margin of error. It is known that about 22,000 taxpayers actually received the allowance in respect of some 75,000 children in 1979–80 and a similar number is expected to receive the allowance in 1980–81. The cost is about £7 million in each year. It is not known how many are wage earners.
The cost of giving child benefit at £4.75 per week—the rate from November 1980—for 75,000 children would be £18.5 million in a full year.
§ Miss Wrightasked the Chancellor of the Exchequer how many wage earners in Birmingham, with children living abroad, were entitled to claim child tax allowances for the financial year 1979–80; how many there will be for the year 1980–81; what is the estimated cost of these allowances; and what would be the cost if the parents were paid the same 215W child benefit allowance as parents with children in the United Kingdom.
§ Mr. Peter ReesThis information is not available, but I refer the hon. Member to the reply I gave today to the hon. Member for Battersea, South (Mr. Dubs). The only additional information available which is relevant to Birmingham is that for 1979–80 about 2,000 taxpayers made claims for these child tax allowances to tax offices in Birmingham. It is not known whether the claimants were resident in Birmingham or whether they were wage earners.