Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what criteria HM Revenue and Customs uses to assess the prudence of settling a tax case when costs of pursuing a case are compared to the settlement offer.

HM Revenue and Customs' (HMRC’s) approach to taking-up, working and settling disputes is set out in its published Litigation and Settlement Strategy (LSS). Governance procedures for how HMRC settles big value disputes are set out in the published Code of Governance for resolving tax disputes.

Together the LSS and the Code of Governance assure taxpayers that tax rules are applied appropriately and even-handedly by HMRC.