§ Mr. Win GriffithsTo ask the Chancellor of the Exchequer (1) how many companies were forced into receivership because of Customs and Excise action to recover outstanding value added tax payments in each of the last three years, and in the current financial year;
(2) how much money was owed to Customs and Excise by those companies forced into receivership because of Customs and Excise action to recover outstanding value added tax payments in each of the last three years, and in the current financial year; and what percentage of the outstanding debt was collected;
(3) how much value added tax revenue in each of the last three years, and in the current financial year, has been lost to the Exchequer because of the failure of businesses owed money by companies forced into receivership by Customs and Excise action to recover outstanding payment.
§ Mr. Win GriffithsTo ask the Chancellor of the Exchequer how many concerns registered to pay value added tax on (i) a monthly basis, (ii) a quarterly basis have not paid(a) their most recent value added tax demand, (b) their last two value added tax demands, (c) their last three value added tax demands and (d) their last four or more value added tax demands; and in each case what is the total amount of money involved.
§ Mr. Ryder[holding answer 15 February 1990]: The information is not available in the form requested and the cost of producing it would be disproportionate.
§ Mr. Win GriffithsTo ask the Chancellor of the Exchequer if he will publish any guidelines issued for those Customs and Excise officials with the responsibility of recovering the debts of those concerns registered for value added tax purposes.
§ Mr. Ryder[holding answer 15 February 1990]: The guidelines are as follows:
AIM OF ENFORCEMENT ACTION. All enforcement action is aimed at recovering tax which a trader has failed to pay voluntarily and encouraging non-compliant traders to become compliant. There are a number of steps leading up to this and, of course, the trader may at any time exercise his option to pay. Whatever action is contemplated, however, there is a simple guiding principle which is always to be borne to mind—DELAY COSTS MONEY.If a trader delays payment until contacted and tax demanded—whether by assessment or distress visit or by civil 426W recovery action—the sooner that demand is made the sooner some or all of the outstanding tax is likely to be paid. Therefore it is vital that contact at each stage of the enforcement process is made as soon as possible and that a priority system is operated to pursue the largest debts first. Remember, all quarterly traders have an average of 75 days to collect the tax before the due date of payment.