§ Mr. Andrew SmithTo ask the Chancellor of the Exchequer how many VAT-registered companies and individuals became insolvent following action by Her 313W Majesty's Customs and Excise in each year since 1991; how much outstanding VAT was recovered from these concerns after formal insolvency occurred; what was the cost to Customs and Excise of pursuing those insolvencies; and how many VAT registrations were affected after guarantees were sought because of previous insolvency action against persons in the new venture.
§ Sir John Cope[holding answer 24 February 1994]: The numbers of VAT-registered companies and individuals who were declared to be insolvent by the courts following presentation of a petition on behalf of Customs and Excise were 6,775 in the financial year 1991–92 and 7,543 in 1992–93. In the vast majority of these cases other creditors were also involved. Figures for recoveries and costs related to insolvencies resulting from petitions on behalf of Customs and Excise are not available separately. Where Customs and Excise seek security from a business this follows VAT registration. The number of cases in which security was sought was 106 in 1991–92 and 573 in 1992–93.