§ Mr. BlunkettTo ask the Chancellor of the Exchequer if, pursuant to his answer of 2 December,Official Report, columns 37–38, he will publish a table showing the levels of uncollected tax at the end of the financial year 1989–90 and 1990–91 for (a) value added tax, (b) income tax, including schedule D and (c) corporation tax, excise duties and capital gains tax, expressed both as a sum figure and as a percentage of total tax due for each category.
§ Mrs. Gillian Shephard[holding answer 12 December 1991]: Information on average daily arrears of value added tax, on the basis of financial years, and on income tax, corporation tax, and capital gains tax arrears at years ending 31 October can be found in "Volume 12: Classes XVIII to XIX" of the 1990–91 appropriation accounts, pages vii and xiii respectively. A copy is available in the House of Commons Library.
Arrears of excise duty on drink, tobacco and road fuel are not collated centrally. However, these duties are either paid in cash on clearance to home consumption or by duty deferment backed up by a financial guarantee. In either case the possibility for arrears is minimal. Arrears of car tax, and betting and gaming duty can however arise and were as follows:
Arrears £ million As percentage of receipts 31 March 1990 48.9 2.0 31 March 1990 6.9 0.3 In general, the bulk of the sums of tax in arrears are collectable and remain outstanding only for short periods, possibly days. Sums outstanding for longer periods risk incurring penalties or interest charges. Ultimately the Revenue Departments write off only those sums indicated in the reply of 2 December 1991, Official Report, columns 37–38. Write-offs occur mainly through insolvencies or from traders becoming untraceable.