Tax man must back businesses

The SNP have raised questions after reports HM Revenue and Customs (HMRC) are hounding some solvent firms out of business after official figures revealed the taxman has forced the closure of a Scottish business almost every working day for the
last two years.

HMRC secured court orders to shut down 466 Scottish companies in 2008 and 2009. Casualties include Highland Airways, which provided a lifeline service to the Western isles, and which went into administration in March.

Mr Weir said:

"While the Chancellor is shutting businesses down the SNP is championing local businesses with cuts to business rates and support for jobs.

"Far from supporting recovery and investing in jobs the Chancellor is driving firms out of business and putting people on the dole.

"There are troubling questions over whether some solvent firms are being hounded out of business. Certainly there is real inconsistency between the action pursued by HMRC and the claims made by the Chancellor that businesses are being given time to spread tax payments over a timetable they can afford.

"It does not make sense to put businesses into administration for relatively small debts. HMRC may get some of its money back, but other creditors, suppliers and customers probably won't. On top of that, the Treasury will lose revenue in tax and national insurance from the people who lose their jobs."

Na h-Eileanan an Iar SNP MP Angus MacNeil highlighted the case of

Highland Airways which was forced into administration in March after HMRC turned down a repayment plan offered by the airline. Highland Airways employed 100 staff.

Mr MacNeil said:

"Alistair Darling's talk of giving companies time to pay is worthless when HMRC are sending round the heavies to shut companies down.

"Highland Airways is a case in point. The company offered a repayment plan but HMRC turned it down. The Revenue may get some of the tax it was owed up front but what about the long-term cost to the community who have lost jobs and saw lifeline services put at risk?"

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