§ Mr. George Cunninghamasked the Chancellor of the Exchequer why the Inland Revenue has taken distraint action, including the impounding of equipment needed for the sending out of invoices, against a firm, whose name has been supplied to him, given that the firm is in default of its tax obligations only to a minimal extent.
§ Mr. Ridley[pursuant to his reply, 15 February 1982, c. 28]: The Taxes Act authorise collectors of taxes to levy distraint for non-payment of taxes. In the case in question, payment of some £8,000 of PAYE tax and national insurance contributions was outstanding. After written and personal application for the moneys had proved unsuccessful, the collector decided to levy distraint. In the majority of cases in which distraint is levied, a "walking possession" agreement enables the taxpayer to retain possession of the distrained assets. This firm, however, initially refused to sign such an agreement and office 88W equipment was removed from the firm's premises. On the following day the equipment was returned when the firm signed the agreement.