§ Miss WiddecombeTo ask the Chancellor of the Exchequer what guidance he has issued to(a) the Inland Revenue and (b) HM Customs and Excise in respect of bankruptcy orders in business insolvency cases. [16196]
§ Dawn PrimaroloThe Inland Revenue and Customs and Excise have a statutory duty to collect tax that is legally due. It is their responsibility, to the Exchequer and to taxpayers generally, to do so speedily and effectively, taking the action they consider appropriate to obtain payment. However both Departments recognise the need to balance their duty to collect tax with the proper concern for the taxpayer to continue in business. Insolvency proceedings are only taken as a last resort, after all other attempts to secure payment within a reasonable time-scale have failed.