Value Added Tax

HC Deb 20 January 1988 vol 125 cc725-7W

Mr. Wigley

To ask the Chancellor of the Exchequer what was the total value of undeclared value added tax discovered and recouped by his Department in each year since 1979.

Mr. Lilley

The total value of underdeclared value added tax discovered each year since 1979 is as follows (figures relate to the financial year ending 31 March):

	£ million
1979	61
1980	84
1981	146
1982	169
1983	290
1984	320
1985	392
1986	496
1987	597

Information on the amount of underdeclared tax actually recouped is not available. However, approximately 99 percent. of all declared and assessed tax is collected.

1984. Mr. Wigley

To ask the Chancellor of the Exchequer what has been the percentage rise in the value of under declarations of value added tax discovered per value added tax control officer since(a) 1979 and (b)

Mr. Lilley

The figures are as follows:

1. (a) The percentage rise since 1 April 1979 after allowing for inflation is 368 per cent.
2. (b) The percentage rise since 1 April 1984 after allowing for inflation is 37 per cent.

Mr. Wigley

To ask the Chancellor of the Exchequer how many value added tax control officers are at present employed in the United Kingdom; and what are the corresponding figures for each year since 1979.

Mr. Lilley

The number of value added tax control officers employed in the United Kingdom for the financial year ending 31 March 1987 was 4,330. The figures for each year since 1979 are as follows:

	Number
1979	4,000
1980	3,700
1981	3,600
1982	3,800
1983	3,550
1984	3,650
1985	3,900
1986	4,040

Mr. Wigley

To ask the Chancellor of the Exchequer what has been the average increase in the value of under declarations of value added tax discovered per value added tax control officer in each year since 1979.

Mr. Lilley

The increases year by year in the average value of underdeclarations discovered by each value added tax control officer are as follows (figures relate to the financial year ending 31 March):

	£
1980	+7,450
1981	+17,850
1982	+3,950
1983	+38,350

	£
1984	+4,850
1985	+12,800
1986	+22,300
1987	+15,100

Mr. Wigley

To ask the Chancellor of the Exchequer what is his estimate of the ratio of current employment costs of the value added tax control officers to undeclared value added tax discovered and recouped; and what are the figures for each year since 1979.

Mr. Lilley

The ratio of current employment costs of value added tax control officers to underdeclared value added tax discovered is 1:7.5. The figure is for the financial year ending 31 March 1987. The corresponding figures for each financial year ending 31 March since 1979 are as follows:

	Ratio
1979	1:1.4
1980	1:1.7
1981	1:2.8
1982	1:2.9
1983	1:5.1
1984	1:5.4
1985	1:6.0
1986	1:6.9

Information on the amount of underdeclared tax actually recouped is not available. However, approximately 99 per cent. of all declared and assessed tax is collected.