HC Deb 24 July 1984 vol 64 cc552-3W
Mr. Spencer

asked the Chancellor of the Exchequer if he will introduce legislation to increase the maximum penalty for fraudulent evasion of value added tax contrary to section 38 of the Finance Act 1972.

Mr. Hayhoe

[pursuant to his reply, 20 July 1984, c. 343]: Under section 39 of the Value Added Tax Act 1983, which superseded section 38 of the Finance Act 1972, the maximum term of imprisonment on conviction on indictment is two years. The committee on enforcement powers of the revenue departments, chaired by Lord Keith, has recommended that the maximum imprisonment under this section should be increased to seven years.

The Government expect to announce their conclusions on the committee's recommendations relating to VAT towards the end of the year.