§ Mr. ClappisonTo ask the Chancellor of the Exchequer what steps he has taken to(a) encourage and (b) enable the public to provide information about fraudulent or improper claims for working families tax credit or other tax credits. [23308]
§ Dawn PrimaroloThe Inland Revenue treats all information received from members of the public about suspected fraud, including tax credit fraud, very seriously. Members of the public are able to inform the Inland Revenue about potential fraudulent or improper claims to tax credits in a number of ways. They can write to or telephone the Tax Credit Office or a local office or telephone a helpline, including the Benefits Anti-fraud Hotline. The Tax Credit Office also has a Childcare Tax Credit Hotline for child care providers to give information of suspected improper claims for child care costs.
§ Mr. ClappisonTo ask the Chancellor of the Exchequer how many employers have been(a) investigated and (b) prosecuted in respect of fraudulent claims for (i) working families tax credit and (ii) other tax credits in each year since the relevant credit commenced. [23309]
§ Dawn Primarolo(a) In 2000–01, routine checks were carried out on the payroll records of approximately 6,800 employers who made payments of tax credits to their employees. The checks established that the vast majority of employers were operating tax credit payments correctly.
In addition, 199 employer cases were taken up by local offices for action in 2000–01 where the Tax Credit Office suspected error or breakdown of the payment system. Of those cases
13 resulted in recovery of tax credits and payment of penalties;161 were settled in other ways, for instance by giving educational assistance and explanations to the employer, that enabled the employee to receive the tax credits due to them;25 cases are still working, and the outcome is not yet known.(b) There have been no prosecutions of employers in respect of tax credits.
§ Mr. ClappisonTo ask the Chancellor of the Exchequer how many(a) investigations, (b) penalties and (c) prosecutions in respect of (i) working families tax credit and (ii) disabled person's tax credit involved the child care tax credit in each year since the credit commenced. [23306]
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§ Dawn PrimaroloThe following table lists the number of investigations, penalties and prosecutions involving child care for working families and disabled person's tax credits, broken down into financial years since the schemes began in October 1999.
Period Child care investigations Penalties Prosecutions Working families tax credit 1 October 1999 to 31 March 2000 55 2 0 1 April 2000 to 31 March 2001 263 0 0 1 April 2001 to 30 November 2001 100 0 0 Disabled person's tax credit 1 October 1999 to 31 March 2000 1 0 0 1 April 2000 to 31 March 2001 14 0 0 1 April 2001 to 30 November 2001 5 0 0