HC Deb 10 February 1986 vol 91 cc332-3W
Mr. Hickmet

asked the Chancellor of the Exchequer (1) how Inland Revenue or Customs and Excise inspectors carry out in-depth investigations into the tax affairs of companies, businesses or schedule D taxpayers;

(2) how many companies went into liquidation, businesses ceased trading and schedule D taxpayers were declared bankrupt following in-depth Inland Revenue or Customs and Excise investigation, stating what proportion that was of those companies, and so on assessed for further tax in each of the years since 1979;

(3) how many in-depth investigations into companies, businesses and schedule D taxpayers the Inland Revenue and Customs and Excise have carried out where they have gone back up to 10 years for each of the years since 1979 to date; and how many such investigations revealed that further tax was payable giving the total figures involved in each year;

(4) how many companies, businesses and schedule D taxpayers following an in-depth investigation by the Customs and Excise or Inland Revenue were given the choice to pay a lesser sum over a period of time or contest the full sum before the commissioners, giving the sums involved;

(5) why, in in-depth investigations by the Inland Revenue and Customs and Excise, the onus is placed on the taxpayer to show that further tax is not payable;

(6) what administrative directions set out how the Inland Revenue and Customs and Excise exercise their powers to carry out in-depth investigations into the tax affairs of companies, businesses and individuals paying tax under schedule D, after audited accounts have been submitted; and if he will state up to how far back such investigations normally go;

(7) what proportion of directors of companies or businesses or schedule D taxpayers who were assessed as liable to pay further tax after an in-depth investigation used professional legal or accountants' assistance in their dealings with the Inland Revenue at the time of agreeing to pay further tax.

Mr. Moore

I shall let my hon. Friend have a reply as soon as possible.

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