§ Mr. SteenTo ask the Chancellor of the Exchequer if he will make a statement on the practice of the Inland Revenue in accepting payments in instalments for arrears of tax for small businesses and individual traders; and what plans he has to review this practice to take account of the current economic climate.
§ Mr. DorrellThe first duty of the Inland Revenue is to collect tax that is properly due and in carrying out this duty it aims to treat all taxpayers fairly and impartially. The Revenue recognises that businesses may face temporary financial difficulties and in such circumstances the collector should be contacted at the earliest opportunity to discuss how the difficulty may be resolved. All reasonable offers of payments, including payment by instalments, are considered. This practice will continue to operate.