§ Mr. Foulkesasked the Chancellor of the Exchequer how many bodies are regarded as charities by the Inland Revenue in Scotland; what information he has about the value of the assets held by such bodies; and what is his estimate of the consequent annual loss of tax revenue.
§ Mr. Moore[pursuant to his reply, 4 June 1984, c.84.]: In the absence of a system of registration of charities in Scotland, Scottish bodies seeking exemption from tax under section 360 of the Taxes Act 1970 apply to the Inland Revenue and have been doing so since 1885. I regret that the information on applications does not cover the number of these bodies that are still active, nor is there a basis available with which to estimate the value of the assets. In the year to 30 September 1983, about £18.25 million of tax was repaid to Scottish charities in respect of income received under deduction of tax; in addition, tax was forgone on any untaxed income of the charities but it is not possible to say how much.
§ Mr. Foulkesasked the Chancellor of the Exchequer how many people are currently employed by the Inland Revenue in Scotland, wholly or partly, on the registration of bodies as charities; and what is the annual cost of this work.
§ Mr. Moore[pursuant to his reply, 4 June 1984, c. 84.]: There is no formal system of registration of charities in Scotland. However, one full-time member of the Inland Revenue's staff and about half the time of two other members of staff is employed in dealing with applications for exemption from tax. The cost of this work is around £30,000 per annum. In addition, other members of staff are employed in the examination of charities' accounts and claims to repayments.
§ Mr. Foulkesasked the Chancellor of the Exchequer what information is demanded of bodies seeking recognition from the Inland Revenue in Scotland as charities; and whether an annual return of information is required.
§ Mr. Moore[pursuant to his reply, 4 June 1984, c. 84]: Bodies seeking recognition as charities from the Inland Revenue in Scotland are asked for documentary evidence of their establishment; such bodies, like any other taxpayer, may be asked to supply annual returns of their income and gains.
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§ Mr. Foulkesasked the Chancellor of the Exchequer what are the powers of the Inland Revenue to release information given to it in confidence by bodies regarded as charities.
§ Mr. Moore[pursuant to his reply, 4 June 1984, c. 84]: Information given to the Inland Revenue by charities in connection with claims to exemption from tax under section 360 of the Taxes Act 1970 is treated in the same way as confidential information given by any other taxpayer, except that section 9 of the Charities Act 1960 allows an exchange of information with the charity commissioners for the purpose of the determination of charity status.