Value Added Tax (Hansard, 4 June 1980)

§ Mr. David Atkinson
asked the Chancellor of the Exchequer whether the increased fines relating to value added tax outlined in the Finance Bill 1980 are fines for either (a) the non-return of the value added tax quarterly return or (b) the non-payment of value added tax or both.

§ Mr. Peter Rees
The proposed maximum penalties contained in the Finance (No. 2) Bill 1980 relate to both failure to furnish a VAT return and failure to pay VAT within the time specified by regulations.

§ Mr. Best
asked the Chancellor of the Exchequer, for the last year for which records are available, (a) how many value added tax payments were made later than the required one month, expressed both numerically and as a percentage of the whole, (b) how many late payments of value added tax were charged a 736W had been no changes from 1979–80 allowances and thresholds, the further information required is as follows:
penalty, expressed both numerically and as a percentage of the whole, (c) what was the total amount raised in penalties from late payment of value added tax and (d) what was the cost of collection of late payments of value added tax.

§ Mr. Peter Rees
During the last seven months of the year ended 31 March 1980 1,857,000 returns were issued to payment traders. Of these some 1,533,500 or 82.6 per cent. were received back after the due date. Figures for the first five months of the year were distorted by industrial action by VAT computer staff.
Customs and Excise has no powers to impose administrative penalties for late payment, but there were 92 prosecutions before the courts, which imposed penalties in every case. Total penalties and costs amounted to £38,044.
I regret that it is not practicable to isolate the cost of collection of late payments from the cost of administering VAT as a whole.

§ Mr. David Atkinson
asked the Chancellor of the Exchequer under what statutory powers Her Majesty's Customs and Excise has powers to prosecute value added tax registered traders for (a) the non-return of the value added tax quarterly return and (b) the non-payment of value added tax.

§ Mr. Peter Rees
The powers are contained in section 38(7) of the Finance Act 1972. The regulations referred to in that section include regulations 51—relating to the furnishing of returns—and 53—relating to payment of tax—of the Value Added Tax (General) Regulations 1977.

§ Mr. David Atkinson
asked the Chancellor of the Exchequer in how many cases in each of the past seven years Her 737W Majesty's Customs and Excise has prosecuted value added tax registered traders for (a) the non-return of the value added tax quarterly return and (b) the non-payment

Year Failure to furnish return Failure to pay tax

1 April 1973—31 March 1974 … … … … Nil Nil

1 April 1974—31 March 1975 … … … … 328 Nil

1 April 1975—31 March 1976 … … … … 1,426 Nil

1 April 1976—31 March 1977 … … … … 4,023 Nil

1 April 1977—31 March 1978 … … … … 4,669 6

1 April 1978—31 March 1979 … … … … 5,415 43

1 April 1979—31 March 1980 … … … … 2,030^* 92^*

^*Prosecutions were not undertaken during and immediately after the period of industrial action by VAT computer staff.

§ Mr. Skinner
asked the Chancellor of the Exchequer if, in furtherance of the Government's policy of support for the arts, he will now zero rate value added tax on the theatre.

§ Mr. Peter Rees
No. To do so would be inconsistent with the nature and purpose of value added tax.

Year	Failure to furnish return	Failure to pay tax
1 April 1973—31 March 1974	…	…	…	…	Nil	Nil
1 April 1974—31 March 1975	…	…	…	…	328	Nil
1 April 1975—31 March 1976	…	…	…	…	1,426	Nil
1 April 1976—31 March 1977	…	…	…	…	4,023	Nil
1 April 1977—31 March 1978	…	…	…	…	4,669	6
1 April 1978—31 March 1979	…	…	…	…	5,415	43
1 April 1979—31 March 1980	…	…	…	…	2,030^*	92^*
^*Prosecutions were not undertaken during and immediately after the period of industrial action by VAT computer staff.