“The probable level of overpayment of the new Tax Credits as a result of claimant error and fraud has led me to qualify my audit opinion on the Inland Revenue Trust Statement for a second year.
“It is important that the Inland Revenue tests the claims for new Tax Credits, as planned; and that it quantifies the financial implications of claimant error and fraud as soon as possible. The Department expects a result in respect of 2003-04 by July 2005, in time for the 2004-05 accounts.
“The successful introduction of Stamp Duty Land Tax, has reduced the opportunities for tax avoidance. Some issues remain and the Department should continue to review the tax revenues still at risk, even though these new arrangements have been introduced, and identify new ways of countering avoidance of Stamp Duty.”
21 Oct 2004