HC Deb 20 November 1996 vol 285 cc574-5W
Mr. Malcolm Bruce

To ask the Chancellor of the Exchequer what is his estimate of the cost of extending the allowable period for the reclaim of overpaid value added tax to(a) four years, (b) five years and (c) six years; and if he will make a statement. [4742]

Mr. Oppenheim

[holding answer 19 November 1996]: Because, by its nature, overpaid value added tax is an unknown quantity until it is discovered and reclaimed, it is not possible to make reliable estimates.

Mr. Bruce

To ask the Chancellor of the Exchequer what representations he has received from the Confederation of British Industry on the Government's plans to restrict the time period for reclaiming overpaid value added tax to three years while retaining the ability of Her Majesty's Customs and Excise to claim VAT underpaid over a six-year time period; what assessment he has made of the effects of such a policy on small and medium businesses; and if he will make a statement. [4741]

Mr. Oppenheim

[holding answer 19 November 1996]: The CBI has made representations in writing and in the forum of the joint VAT consultative committee. Representatives of Customs and Excise and the Treasury also attended a special meeting organised by the CBI at which businesses were able to discuss their concerns about the proposed time limit on recovery of overpaid tax. I have taken careful note of the points raised and the impact of the proposal on all sectors of business.

Mr. Bruce

To ask the Chancellor of the Exchequer what meetings there have been within the last two months between the head of the international and supply division of the VAT policy directorate of Her Majesty's Customs and Excise and the European Commission, represented by the head of the VAT unit of DGXXI; if he will publish the minutes of these meetings; what advice was given by the Commission's representative to the United Kingdom Government on the subject of the time limits applying to the reclaiming of VAT for(a) taxpayers and (b) Her Majesty's Customs and Excise; and if he will make a statement. [4743]

Mr. Oppenheim

[holding answer 19 November 1996]: The head of the international and supply division of the VAT policy directorate of Her Majesty's Customs and Excise and the head of the VAT unit of DGXXI have met on several occasions in the last two months, most recently on 4 and 5 November. No formal minutes have been produced and the content of such bilateral discussions, which covered a range of issues, is regarded as confidential.