§ Mr. Michael Brownasked the Chancellor of the Exchequer whether immunity from prosecution is given or whether payments are made to informants in tax avoidance or evasion cases after the resolution of the case and the recovery of an outstanding tax debt by the Inland Revenue; if so, what percentage of the recovered tax debt is paid to the informant; who authorises the payment; whether it is subject to taxation; and what are the total amounts that have been paid out and in respect of how many different cases.
§ Mr. Peter ReesCases in which an informant implicated in a tax fraud has been given immunity from prosecution have been very rare. In such cases the Director of Public Prosecutions has been384W consulted by the Commissioners of Inland Revenue.
Under the provisions of section 32 of the Inland Revenue Regulation Act 1890 the Commissioners of Inland Revenue are authorised, subject to the consent of the Treasury where the amount exceeds £50, to pay a reward to a person who informs them of any offence against any Act relating to inland revenue or assists in the recovery of any fine or penalty. The size of the reward is determined by the circumstances of each case; it is not fixed by reference to a percentage of the amount recovered. The payments are not liable to income tax. Since January 1974 there have been nine rewards totalling £1,445.