§ Mr. Gordon PrenticeTo ask the Chancellor of the Exchequer how many individuals have entered into agreements with the Inland Revenue in each year since 1997 to pay a specified sum in tax in lieu of submitting an annual tax return; what the rationale is for this policy; and if he will make a statement. [62055]
§ Dawn PrimaroloThe Inland Revenue have not entered into agreements that absolve individuals from the general obligation to submit an annual tax return. Under Inland Revenue's power of care and management agreements of the type described were entered into and intended as a practical basis for taxing future income and gains where there would otherwise have been particular difficulties in establishing an exact figure. The Inland Revenue are no longer making these agreements.
No central records were kept of these agreements at the time they were made, but the number of individuals so far identified to have been covered by them in the years in question is as follows:
- 1997: 7
- 1998: 4
- 1999: 3
- 2000: 2.
These figures include one case (covering four individuals, in 1998) that has come to light following recent publicity. Agreements in other cases have also covered the tax affairs of more than one individual.