HC Deb 20 March 1984 vol 56 c432W
Mr. Rooker

asked the Chancellor of the Exchequer if he will be making any changes to the target proportion of company accounts for in-depth investigations in 1983–84 and 1984–85.

Mr. Moore

[pursuant to his reply, 16 March 1984, c. 285]: The target proportion of company accounts selected for investigation in depth was set at 1.3 per cent. for 1983–84 and that target will be achieved. For the year 1984–85 a target of 1.2 per cent. has been set. The new target reflects mainly an increase in the number of accounts eligible for selection. An increase in the complement of inspectors has been allowed for in the 1984–88 Inland Revenue manpower target to maintain levels of investigation in the light of the growth of accounts.

Mr. Rooker

asked the Chancellor of the Exchequer if he will publish the amount of extra revenue collected in respect of the classes of accounts referred to in his answer of 5 March, Official Report, columns 406–7; and if he will make a statement outlining how such accounts are selected for in-depth investigation.

Mr. Moore

[pursuant to his reply, 16 March 1984, c. 285]: The amount of extra revenue collected in each of the three classes of taxpayer referred to was:

£ million
(i) Companies in year ended 31 October 1983 24.99
(ii) Partnerships in year ended 31 October 1983 26.56
(iii) Trusts in year ended 31 October 1982 7.03

The Inland Revenue selects accounts of companies and partnerships for investigation in depth only where the inspector has grounds for dissatisfaction. The selection process is explained in some detail in paragraphs 59 to 64 of the 121st report of the Board of Inland Revenue (Cmnd 7473). It is also described and discussed at chapter 10.2 of the Keith report (Cmnd. 8822). In trust cases, all the returns are scrutinised annually and investigations are taken up if there are indications of omitted income.

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