Article: 'Chaotic' tax credits under fire as losses run to GBP 1bn a year

MORE than GBP 1 billion a year is being lost to fraud and error in the chaotic tax credit systems, despite repeated warnings to the government to tighten up its scrutiny, it was revealed yesterday.

In a damning report on Prime Minster Gordon Brown's flagship policy, the committee of public accounts says HM Revenue and Customs (HMRC) has still not brought any measure of control to the system.

It says tax credits have generated overpayments of GBP 6 billion in three years, leaving 1.9 million families struggling to pay back money often already spent.

About GBP 2.3 billion of this is unlikely ever to be reclaimed.

Edward Leigh, the Conservative chairman of the committee, said: "The tax ...

Related newspaper, magazine, and journal articles:

 
 
Newsweek Harper's Magazine The Washington Post Chicago Tribune Crain's Chicago Business PRNewswire Pediatric News The Nation Advertising Age The Economist (US) A FREE trial gives you access to over 80 million articles! Access over 6,500 publications with a FREE trial!