HC Deb 01 February 2002 vol 379 cc635-6W
Mr. Bercow

To ask the Chancellor of the Exchequer if he will state for the VAT inspections control programme for 2000–01(a) the number of staff years used, (b) the running costs, (c) the additional tax discovered and (d) the unit cost ratio of cost to revenue. [24795]

Mr. Boateng

The information requested for the VAT inspections control programme 2000–01 is as follows:

  1. (a) Total VAT staff years used figure is 5,162, including support staff.
  2. (b) Running costs were £130 million, in terms of salary and expenses.
  3. (c) Net additional tax of £2.3 billion discovered.
  4. (d) The unit cost ratio is £1 cost: £17.69 net additional revenue.

Mr. Bercow

To ask the Chancellor of the Exchequer how many VAT-registered companies and individuals became insolvent following action by HM Customs and Excise in each year since 1997; how much outstanding VAT was recovered from these concerns after formal insolvency occurred; what was the cost to Customs and Excise of pursuing those investigations; and how many VAT registrations were effected after guarantees were sought because of previous insolvency action against persons in the new venture. [24806]

Mr. Boateng

The information is as follows:

1. Number of companies and individuals insolvent following

Customs' action
Year ended 31 March Customs bankruptcy/winding up orders
1998 4,333
1999 4,891
2000 5,162
2001 4,313
2. Outstanding VAT recovered after formal insolvency occurred
£ million
Period Amount recovered
Year ended 31 December 1998 42
Year ended 31 December 1999 43
15 months ended 31 March 2000 64
Year ended 31 March 2001 56

3.Customs do not hold information specific to the cost of pursuing bankruptcy and winding-up orders and post-insolvency recovery. It is not cost effective to produce this information.

4.Customs do not maintain information on requirements of security explicitly due to a history of insolvency. The table that follows details the number of cases where security was obtained from traders considered to present a risk to the revenue. This includes instances of persons involved in previous insolvencies.

Year ended 31 March Total number of cases where security was obtained
1998 722
1999 741
2000 808
2001 481

Forward to