§ Mr. Peter BottomleyTo ask the Chancellor of the Exchequer if he will list(a) the building societies which will not be repaid and (b) the amounts of tax involved, under the proposals referred to in paragraph 4.22 of the 1991 Financial Statement.
§ Mr. MaudeIt would not be appropriate to provide information about the tax affairs of individual taxpayers.
§ Mr. Peter BottomleyTo ask the Chancellor of the Exchequer (1) to what extent the view of Inland Revenue that the disputed extra tax paid by building societies does not in fact involve the payment of extra tax, is based on the ground that building societies account on an accruals basis while government accounts on a cash basis;
(2) pursuant to his answer to the hon. Member for Eltham of 15 April Official Report, columns 9–11, about the way building societies account for tax, whether his answer was based on the premise that the Inland Revenue would not receive extra tax or that building societies would not pay extra tax.
§ Mr. MaudeThe 1986 change from the old basis on which building societies accounted for tax annually on interest accruing in their accounting year to the present system under which they account quarterly for tax on interest and dividends paid does not mean societies have paid extra tax. The change affected the time of payments, not their amounts. Interest and dividends paid during transitional periods have been subjected to a single charge to tax.
§ Mr. Peter BottomleyTo ask the Chancellor of the Exchequer if he will list the occasions on which the Government publicly acknowledged the effect that a judgment adverse to the Inland Revenue in the Woolwich Equitable building society case might have on other building societies; and what the likely effect was judged to be on each such occasion.
§ Mr. MaudeMy right hon. Friend the Chancellor of the Exchequer referred to this matter in this year's Budget statement. There has been no previous occasion of a similar Government statement on this matter.
§ Mr. Peter BottomleyTo ask the Chancellor of the Exchequer if he will give details of where the £250 million for 1986 transitional provisions: building societies, shown in table 4.1 of the "Financial Statement and Budget Report" 1991–92, comes from.
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§ Mr. MaudeThe figure is the estimated amount, net of corporation tax, which will not be repaid to various building societies following my right hon. Friend's Budget proposal contained in clause 50 of the Finance Bill.