§ Mr. GoodmanTo ask the Chancellor of the Exchequer if the Inland Revenue make inquiries into family backgrounds in advance of looking at the financial affairs of the individual into whom they are inquiring. [18889]
§ Dawn PrimaroloThe Inland Revenue does not routinely look into family backgrounds before commencing a tax inquiry. But there are circumstances in which it would be relevant to do so. For example, the main reason for considering whether to inquire might be that an individual's reported income seemed much lower than his probable expenditure.
In such a case the Revenue might look at the financial position of others in the household to see whether their incomes and, therefore, possible contribution to family finances might account for any perceived shortfall. Preliminary research of this kind helps to focus inquiries on those cases presenting the biggest risks.