§ Mr. HobanTo ask the Chancellor of the Exchequer how many households completed neither a tax return nor a tax credit claim form in(a) 1998–99, (b) 1999–2000 and (c) 2000–01. [32868]
§ Dawn PrimaroloThe Inland Revenue does not hold return information by household.
§ Mr. Edward DaveyTo ask the Chancellor of the Exchequer whether the concession under which the penalty for not submitting a return on time will not be charged if the Revenue reject a return as incomplete and the taxpayer returns it within 14 days will apply this year; and what the statutory authority is that allows the Revenue to reject a return in such circumstances. [32736]
§ Dawn PrimaroloSection 8 of the Taxes Management Act 1970 requires a person who is given a notice to make and deliver a return containing such information as may reasonably be required in the pursuance of the notice. The Inland Revenue will reject a return if it fails to satisfy the requirements of section 8.
The term "incomplete" had the potential to be misleading and the Inland Revenue now refers to such rejected returns as "unsatisfactory".
The 14 day period of grace will apply this year if a return received before the filing date is sent back to someone who has genuinely forgotten something, such as signing the return. The 14 day period of grace will not be given in cases where it appears a delaying tactic is being employed.
A detailed explanation of the position was given in Inland Revenue Tax Bulletin 53.