UK Inland Revenue Unconcerned Over Deletion Of Tax Records

by Jason Gorringe, Tax-News.com, London

10 December 2004

According to reports in the UK media this week, the Inland Revenue has not, so far, discovered the exact number of tax records that were deleted by a software error last year, but has suggested that the matter is no longer a high priority.

The files were apparently removed by a "well established and accepted" housekeeping system before the tax authority carried out its usual final review to check whether any tax remained over or underpaid for the relevant year.

The correct purpose of the housekeeping system was to remove files from the system on taxpayers who had left employment and remained without a job for a period of more than three years. The error is likely to have affected PAYE taxpayers and those who receive income without tax deducted.

The Silicon.com news service reported this week that an Inland Revenue spokesman had confirmed that despite a year-long investigation into the matter, there are still no concrete figures available. This situation is likely to continue into 2005, the spokesman reportedly explained, as the records are not live, and are therefore not a priority.

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