UK Inland Revenue Compensation Scheme Slammed By ACCA

by Caroline Maxwell, Tax-News.com, London

14 November 2001

The Association of Chartered Certified Accountants (ACCA) has slammed the Inland Revenue's recently announced compensation scheme for tax payers who have been seriously inconvenienced by the taxman, saying that it does not go nearly far enough towards compensating for the stress caused by mistakes.

In the Inland Revenue's Code of Practice, which details taxpayer responsibilities, the tax authorities have for the first time laid out compensation levels of between £25 and £500 for cases in which the tax payer has been sent incorrect information which has resulted in additional work. The IR has also stated that recompense may be made for worry and distress, as well as for delays in handling complaints.

However, the head of the ACCA, Chas Roy-Chowdhury, has criticised the Inland Revenue, explaining: 'Tax payers who are investigated by the Inland Revenue are often put through intensely stressful ordeals. Even the highest compensation available would not be adequate redress for someone who may have been worrying unecessarily for months, forced to spend valuable time resolving a problem not of his making and losing business opportunities in the process.'

The ACCA has suggested instead that an independent panel be set up to establish the correct level of compensation for distress and lost business as a result of Inland Revenue errors.

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