§ Mr. Woolmerasked the Chancellor of the Exchequer what proportion of unincorporated and of incorporated taxpayers' accounts the Inland Revenue aims to examine; and what was the percentage actually examined in each case in the latest available 12-month period.
§ Mr. RidleyAll accounts received by the Inland Revenue are reviewed and a proportion selected for closer examination. In the year to 31 October 1981 about 6 per cent. of the accounts of unincorporated businesses and about 33 per cent. of company accounts—mainly the larger companies—were scrutinised for any necessary adjustments to the tax computations. There are no precise targets for this work. In the same year about 2.75 per cent. of the accounts of unincorporated businesses and about 0.6 per cent. of company accounts—representing about 0.9 per cent. of the smaller companies—were thoroughly examined because the inspector was not satisifed with their basic accuracy. The targets were 3 per cent. of unincorporated businesses and 1 per cent. of the smaller companies.