SNP QUESTION HMRC OVER SCOTS BUSINESS CLOSURES

SNP QUESTION HMRC OVER SCOTS BUSINESS CLOSURES

ONE FIRM A DAY SHUT DOWN BY HMRC

SNP Business and Enterprise spokesperson Mike Weir MP has questioned
whether 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?"