§ Rev. Martin SmythTo ask the Chancellor of the Exchequer if he will review the operation of the 715 tax exemption certificate in the building industry in the light of reports that it enables paramilitary groups to defraud the Revenue; and if he will make a statement.
§ Mr. Norman Lamont[holding answer 16 February 1988]: The operation of the special tax regime for the construction industry, including its effectiveness in deterring and detecting tax evasion, is kept under regular review.
§ Rev. Martin SmythTo ask the Chancellor of the Exchequer what checks are made on building companies before they are allowed to obtain tax exemption certificates from the Inland Revenue; and how many such certificates have been issued in London in the last three years.
§ Mr. Norman Lamont[holding answer 16 February 1988]: The Inland Revenue should satisfy itself—from its own records, from information provided by the applicant or through other appropriate enquiry — that the applicant meets the requirements of section 70 and parts I and IV of schedule 12 to the Finance (No. 2) Act 1975.
The figures requested by the hon. Member are not readily available. However, on the basis of a sampling exercise, the number of companies holding 714P or 714C exemption certificates whose tax affairs are dealt with by tax offices in the London regions are roughly:
Number January 1986 16,500 January 1987 17,300 January 1988 17,600 Many construction firms undertake work outside the immediate area of their tax office.