APPROPRIATION ACCOUNTS: 1923-24.

APPROPRIATION ACCOUNTS OF THE SUMS GRANTED BY PARLIAMENT FOR REVENUE DEPARTMENTS FOR THE YEAR ENDED 31 MARCH 1924, TOGETHER WITH THE REPORT OF THE COMPTROLLER AND AUDITOR GENERAL THEREON AND UPON REVENUE AND CERTAIN STORE ACCOUNTS.

(Presented pursuant to Act 29 & 30 Vict. c. 39, s. 22,
and 11 & 12 Geo. V., c. 52, s. 2 and 4.)

Ordered, by The House of Commons, to be Printed,
10th February 1925.

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1925.

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REVENUE DEPARTMENTS,

APPROPRIATION ACCOUNTS, 1923-24.

REPORT OF THE COMPTROLLER AND AUDITOR GENERAL

Out-turn of the year.

1. As shown in the Abstract on pages 10 and 11, the gross estimated expenditure for Revenue Departments amounted to 64,687,671., and the gross expenditure actually incurred to 62,649,2957. 15s. 10d. Appropriations in Aid were estimated at 2,222,9401. and the aggregate corresponding receipts were 2,638,598. 14s. 11d. The net expenditure thus amounted to 60,010,6977. -s. 11d., compared with the Supply Grants of 62,464,7311.

The amount to be surrendered on these Votes is 2,454,0331. 19s. 1d., which is 4% of the aggregate Supply Grants, and is made up thus :—

2. A test examination has been applied by my officers, with satisfactory results, to the Store accounts of the three Departments.

Revenue Accounts.

3. A test examination of the Revenue accounts of the three Departments has been carried out in London and at various provincial centres, with satisfactory results.

VOTE 1-CUSTOMS AND EXCISE.

Remissions.

4. In accordance with the directions contained in Treasury Minute of 31 December 1897, I have been furnished with a return of extrastatutory remissions of duty and claims abandoned on account of revenue which involve a loss of 50l. and upwards.

The only item on the return relates to a remission of 541l. 13s. 7d. This remission was made under reciprocal arrangements with the Irish Free State to overcome a special difficulty arising in the case of dutiable goods despatched from Great Britain to Ireland, or vice versa, immediately before 1 April 1923 and reaching the country of import on or after that date.

VOTE 2-INLAND REVENUE.

Income Tax repayment frauds.

5. The Statement of Losses under Subhead O. pages 20 and 21 records three cases of loss (Nos. 18, 24, and 25) due to payment of fraudulent Income Tax Repayment Claims. In addition to these cases, there are several others relating to a number of frauds carried out between February 1921 and March 1924, the heavy loss resulting from which will appear as a charge against the Vote in the accounts for 1924-25 or later years.

In consequence of the serious nature of the frauds in one of the last mentioned cases, the Board of Inland Revenue appointed a Departmental Committee in August 1923 to investigate the means adopted in perpetrating the frauds and the causes of the failure of the existing machinery to detect them, and to recommend any precautions and safeguards which they might consider practicable and desirable for the protection of the Revenue in connexion with repayment claims.

The Committee reported in February last, and their recommendations have been embodied in Departmental Instructions to Inspectors of Taxes.

I am of opinion that the precautions now taken, and the institution of the Departmental audit referred to in paragraph 7 of my last Report, should reduce to a minimum the risk of loss in future from frauds of this nature.

Remissions.

6. I have been furnished by the Board of Inland Revenue with a schedule of the several cases, involving a loss of 50l. and upwards, in which claims for duty or interest receivable under the Revenue Acts were remitted during the year ended 31 March 1924 without statutory authority, from motives of compassion or equity arising out of particular circumstances in individual cases. The reasons given for remission appear on examination to be satisfactory. The total of the amounts shown as having been remitted during the year is 515,6291. 5s. 1d. as