asked the Chancellor of the Exchequer to what extent VAT inspectors keep premises under surveillance.

In the normal way VAT officers do not keep premises under surveillance. Only if necessary in connection with the investigation of fraud might such surveillance be carried out; but this would be exceptional.

asked the Chancellor of the Exchequer what powers VAT inspectors possess in relation to tapping telephone conversations.

None.

asked the Chancellor of the Exchequer what powers exist for compensation of business loss caused by the investigations of VAT inspectors.

I would refer the hon. Member to the comments I made on this subject during the Report stage debate on the Finance Bill on 13th July.—[Vol. 915, c. 564–74.]

asked the Chancellor of the Exchequer (1) whether he will make a statement as to the powers of VAT inspectors;(2) whether VAT inspectors have powers to search premises without the consent of the owner;(3) whether VAT inspectors are allowed to contact private customers of firms in order to check information.

VAT officers powers are contained in the Finance Act 1972. In particular, Section 35 refers to the furnishing of information and production of documents and Section 37 to the powers of entry and search of premises.