§ Mr. BercowTo ask the Chancellor of the Exchequer how many investigations for tax fraud were carried out in each year since 1997; and what was the success rate of those investigations. [25301]
§ Mr. Andrew SmithThe Inland Revenue carries out inquiries, as opposed to investigations, into tax returns as part of its work in tackling non-compliance. At the outset of any inquiry there is no assumption as to whether a return is incorrect and/or incomplete and, therefore, no assumption about the existence or otherwise of fraud or negligence. While the majority of inquiries are undertaken on the basis of a perceived compliance risk this is not true of all inquiries and a successful inquiry is one that is carried out thoroughly and in accordance with appropriate codes of practice.
Detailed information about the number of inquiries undertaken in each year and the additional liabilities established as a result of the Revenue's work in tackling non-compliance is set out in the Inland Revenue annual report for each year, available in the House of Commons Library.