HC Deb 22 May 1996 vol 278 cc196-7W
Ms Primarolo

To ask the Chancellor of the Exchequer what are the latest available figures for(a) under-declarations and (b) over-declarations of VAT voluntarily disclosed; and what assessment he has made of the preventive effects of assurance visits on these figures. [30053]

Mr. Heathcoat-Amory

[holding answer 21 May 1996]: Customs' latest audited figures for VAT voluntarily disclosed in the year ended 31 March 1995 are as follows:

  1. (a) under-declarations—£366 million
  2. (b) over-declarations—£568 million.

It is not possible to quantify the preventive effect of assurance visits on these figures.

Ms Primarolo

To ask the Chancellor of the Exchequer what research has been(a) commissioned and (b) evaluated by Customs and Excise into the link between VAT compliance and assurance visits; if the results are published; and what plans he has for additional research in this area. [30054]

Mr. Heathcoat-Amory

[holding answer 21 May 1996]: Customs tells me that it has an on-going programme of research into the link between VAT compliance and assurance visits. It asks academics to carry out research to evaluate the effect of the assurance programme on trade sectors. None of the material produced so far is of sufficient general interest to warrant publication, although it has been made available to interested parties inside the Department.

Ms Primarolo

To ask the Chancellor of the Exchequer what amount of VAT arrears have been written off in each of the last 10 years. [30055]

Mr. Heathcoat-Amory

[holding answer 21 May 1996]: Write-off figures for 1995 have not yet been finalised. The value of VAT remitted or written off in the previous 10 years was as follows:

  • 1994: £550,464,000
  • 1993: £742,376,000
  • 1992: £745,773,000
  • 1991: £515,335,000
  • 1990: £212,715,000
  • 1989: £176,478,000
  • 1988: £225,780,000
  • 1987: £216,354,000
  • 1986: £178,601,000
  • 1985–86: £238,999,000.

From 1 April 1986, schedules of these amounts have been prepared on a calendar year basis. Figures for 1986 cover the period 1 April to 31 December.

Insolvency accounts for approximately 90 per cent. of all VAT write-offs or remissions.