HC Deb 06 July 1993 vol 228 cc99-100W
Mr. Cousins

To ask the Chancellor of the Exchequer how many actions special office 2 of the Inland Revenue has brought for non-payment or avoidance of tax.

Mr. Dorrell

The special offices settle their investigations cases by recovery of tax lost, and where appropriate interest and penalties due under the Taxes Acts. Special office 2 settled 83 cases in the year ended 5 April 1993 and it has 176 cases under inquiry at present.

Mr. Cousins

To ask the Chancellor of the Exchequer what grades of officers of the Inland Revenue are allowed to make settlement agreements in cases of possible tax avoidance; and if he will place the written guidance to officers covering such matters in the Library.

Mr. Dorrell

The agreements in these cases would normally be to settle appeals, which inspectors or other proper officers of the Crown may do under section 54 of the Taxes Management Act, 1970. The grade level of the inspector or other officer responsible would depend on the size and difficulty of the case and could vary from pay bands A to C—formerly principal inspector/grade 5 and below. The officer responsible for handling the case would also deal with any contract agreement with the taxpayer for the payment of unassessed tax, where settlement was reached in this way. There is no written guidance to officers specifically on agreements covering cases of possible tax avoidance, but technical advice is given by head office specialists on many areas of avoidance.

Mr. Cousins

To ask the Chancellor of the Exchequer what internal procedures are in force to decide whether to undertake prosecutions for tax non-payment or avoid-ance; what grade of officer would normally decide such matters; and if he will place the written guidance to officers covering such matters in the Library.

Mr. Dorrell

The Inland Revenue take proceedings in examples of all categories of serious tax fraud provided there is evidence to the standard of proof required by the criminal courts. Investigation of cases for possible criminal proceedings is the responsibility of officers in parts of the special compliance office. After legal advice from the office of the solicitor of Inland Revenue, in accounts fraud cases decisions to proceed are taken at under secretary level and in other cases at pay band A—formerly principal inspector/grade 5—level. I am arranging for a copy of the board's current order covering such matters to be placed in the Library.