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VAT: Fraud

Volume 468: debated on Monday 26 November 2007

To ask the Chancellor of the Exchequer (1) what estimate he has made of the amount of VAT received by the public purse from telephone calls by members of the public invited by television shows under false pretences; (162774)

(2) if he will donate to the unclaimed registrar fund the VAT receipts from telephone calls invited under false pretences by television shows;

(3) if he will donate to charity the VAT receipts from telephone calls invited under false pretences by television shows.

[holding answers 12 November 2007]: No such estimate has been made. In normal circumstances, if an individual receives a refund or discount from a supplier, any tax originally charged may be adjusted by the supplier and refunded to the customer.

All VAT collected by HMRC is applied to the Government’s priorities and spending plans, as set out by the Chancellor in the 2007 pre-Budget report and comprehensive spending review. This includes over £515 million that will be invested by the Office of the Third Sector in third sector programmes over the comprehensive spending review period.