“The significant level of overpayment of Working Families’ and Disabled Person’s Tax Credit – potentially some 10 to 14 percent – is cause for serious concern and I have qualified my audit opinion.
“The level of problems caused to tax credit claimants and employers as the new tax credit systems went live in April 2003 demonstrated that there were undetected gaps in the design of the testing regime for the systems.
“The Inland Revenue must pay particular attention to ensuring that recovery from the problems with new tax credits does not undermine the Department’s reputation for integrity and accuracy when dealing with taxpayers’ affairs. This reputation is essential to the effective assessment and collection of tax.”
19 Nov 2003