§ Mr. AllenTo ask the Chancellor of the Exchequer what estimate he has made of revenue to be lost in respect of write-offs for bad debts incurred in 1990–91 by the main banks in the United Kingdom.
§ Mr. LilleyThe revenue cost of write-offs of bad debts incurred in 1990–91 by the main banks in the United Kingdom has not been estimated.
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§ Mr. AllenTo ask the Chancellor of the Exchequer if he will make it his policy to collect information on the total tax write-off for bank lending to the Third world.
§ Mr. LilleyBanks' published accounts contain information about the commercial provisions they make. Information about the amounts allowable for tax can be obtained only after the banks have submitted their accounts to the Inland Revenue and the tax allowable provisions have been discussed and agreed between the taxpayer and the Revenue. This can be a lengthy process. The Inland Revenue collects information on amounts eventually allowed for tax.
§ Mr. AllenTo ask the Chancellor of the Exchequer if he will make it his policy to issue guidance to banks regarding future Government tax subsidies or write-offs to banks which fail to recoup loans to the Third world or other debtor nations.
§ Mr. LilleyThe amount of tax relief available to banks in respect of bad or doubtful debts, including debts owed by sovereign debtors, is determined by the tax laws enacted by Parliament.