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Article: 'Chaotic' tax credits under fire as losses run to GBP 1bn a year
- Article from:
- The Scotsman
- Article date:
- February 5, 2008
- Author:
CopyrightCopyright 2008 The Scotsman. Provided by ProQuest LLC. (Hide copyright information)
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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 ...