Inland Revenue And Customs Expected To Merge After Government Review

by Robert Lee, Tax-News.com, London

17 February 2004

A high level report into the functioning of the UK’s two main tax collection bodies, the Inland Revenue and Customs & Excise, is due for imminent release and is widely tipped to recommend a merger of the two departments.

Whilst the government has yet to give any clear indication as to the contents of the review undertaken by Gus O’Donnell, the Treasury’s top ranking civil servant, Chancellor Gordon Brown has reportedly requested that the review examines the workings of private sector mergers, hinting where the government’s thinking is on the issue.

The review was prompted after a series of well-publicised blunders by both departments, such as the Revenue’s mishandling of the new child tax credits and the collapse of a high profile court case against fifteen men accused by customs of evading alcohol duties. By slimming down the system to entail just one tax collector, it is felt that future mistakes will be reduced, and more tax collected for less cost.

Whilst the government has yet to announce a fixed date for the release of O’Donnell’s findings, it has been suggested that its publication will coincide with the March 17 budget.

In racing, they say: 'Double your bets and double your losses'; but no doubt Government is different.

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