§ Mr. Rookerasked the Chancellor of the Exchequer how many non-individual taxpayers pay increased tax following in-depth checks by the Inland Revenue of accounts already assessed; what proportion of accounts are so checked and what proportion of staff are engaged on this work.
§ Mr. MooreIt is not possible to provide the information precisely in the form in which it is requested in respect of each of the categories of taxpayer.
As regards companies liable to corporation tax, the number of accounts subjected to investigation in depth in the year ended 31 October 1983 and which resulted in increased tax being payable was 4,170. Of these, the number which resulted in additional tax in respect of earlier years' accounts was 3,116. The target proportion of company accounts for in-depth investigation for the year ended 31 October 1983 was 1.3 per cent. Approximately 5 per cent. of the time of fully trained inspectors in local tax districts is spent in company investigation.
As regards partnerships, the number of accounts subjected to investigation in-depth in the year ended 31 October 1982 and which resulted in increased tax being payable was 8,634. Of these, the number which resulted in additional tax in respect of earlier years' accounts was 5,529. The target proportion of all schedule D accounts including partnership accounts for in-depth investigation for the year ended 31 October 1982 was 3 per cent.
As regards trusts, the number of investigations carried out in the year ended 31 October 1982 and which resulted in increased tax being payable was 814. Of these, the number which resulted in additional tax in respect of earlier years was 790. Not all investigations into the tax liabilities of trusts involved the examination of accounts. There is no target proportion set for the investigation of trusts.
Information is not available which would enable an estimate to be made of the proportion of staff engaged on investigations into partnerships and trusts respectively.