HMRC Hides Behind Commercial Interests

HMRC have responded to my FOI request submitted 7 October, about DEC.

I reproduce the full text of their response below.

As you can see most of my queries have not been answered:

"we believe that disclosure would prejudice HMRC's commercial interests"

The "irony" being that they manage to not answer my queries late!

"Dear Mr Frost

Freedom of Information Act 2000 (FOIA)

I am writing regarding your request for information dated 7 October 2016. I am sorry for the delay in replying. In your request you asked for the following information with regard to Digital Evidence Capability (DEC):-

1. What is Digital Evidence Capability in the context of Counter-Avoidance and can you verify its existence?
2. How much has it cost the taxpayer to date and when did development of the system begin?
3. Is it being actively used within Counter Avoidance for tracking avoidance cases and if so, how many cases are currently on the system?
4. Has the system generated any avoidance cases that have been pursued?
5. Is Mark Nellthorp responsible for managing the development of the system?

Development of the Digital Evidence Capability system (DEC) began in 2014. The objective of DEC is to provide a single IT system for litigation teams in Solicitors Office and the Counter-Avoidance Directorate to manage evidence relating to avoidance cases electronically. As the system is still in development, it is not in active use. DEC is not intended to "generate" avoidance cases. The Senior Responsible Officer for managing the development of DEC is not Mark Nellthorp.

HMRC holds the information requested on the costs of the system to date but it is being withheld. The exemption that applies is section 43(2) FOIA because we believe that disclosure would prejudice HMRC's commercial interests. This is because the requested information largely relates to work undertaken by Cap Gemini under HMRC’s Aspire contract and, combined with information possessed by IT contractors who have worked on the DEC system, might enable individuals to estimate day rates and profit margins.

Section 43 is qualified exemption so I must consider whether the balance of the public interest favours maintaining the exemption.

I accept there is a strong public interest in HMRC being accountable for its decisions and that it is as
Director: David Richardson

transparent as possible about the ways in which it makes those decisions. When a Government department enters into contracts with commercial entities, the public have a right to know that the public purse is being expended wisely and that departments are getting value for money. Disclosing the requested information would demonstrate HMRC’s wil ingness to be open about its contractual arrangements.

Whilst there is a strong public interest in HMRC being accountable for its decisions, it should be noted that the department is subject to regular scrutiny by bodies such as The National Audit Office, the Public Accounts Committee and the Treasury Select Committee. Through this scrutiny, the effectiveness of HMRC’s strategic decisions can be chal enged to ensure HMRC is accountable.

Disclosure of such commercial y sensitive information could weaken our partners’ position in a competitive environment and could also harm the relationship between them and the Department. This would in itself undermine the commercial interests of both parties and potentially the efficacy of our contracts. Furthermore it could have an inhibiting effect on other third parties currently, or potentially, doing business with the Government and therefore on the Government’s ability to secure value for money which is against the public interest. Release of information which could damage companies commercially would discourage them from dealing with the public sector and would undermine the necessary mutual trust and respect between private and public sector partners.

So, on balance I consider the public interest favours maintaining the exemption.

I can assure you though that HMRC is focused on getting value for money in the development of the IT system. Most of the IT development work is now being undertaken in-house and we are ensuring that all IT contractors working on the project provide value for money.

To be helpful, and outside of the FOIA, you might like to be aware of ‘HMRC’s digital blog’ where you can find out news about our progress and information on specific digital projects - https://hmrcdigital.blog.gov.uk/about-us/. On the 12 Feb 2016, Kristian Miller HMRC's Head of IT Strategy, shared a copy of HMRC’s long term IT vision which included a reference to DEC. This can be found at: - https://hmrcdigital.blog.gov.uk/wp-content/uploads/sites/20/2016/02/HMRC-IT- Strategy-2016.pdf

If you are not happy with this reply you may request a review by emailing [email address], or by post to HMRC FOI Team, Room 1C/23, 100 Parliament Street London SW1A 2BQ. You must request a review within 2 months of the date of this letter. It would help us carry out our review if you set out the aspects of the reply that concern you and why you are dissatisfied.

If you are not content with the outcome of an internal review, you can complain to the Information Commissioner’s Office (ICO). The ICO wil not usual y consider a case unless you have exhausted the internal review procedure provided by HMRC. You can make a complaint through the ICO’s website at: www.ico.org.uk, or by post to: Information Commissioner’s Office, Wycliffe House, Water Lane, Wilmslow, Cheshire SK9 5AF.

Yours sincerely "

Tax does have to be taxing.

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Whither DEC?

In December last year I wrote the following about DEC:

"Who, why, or what is DEC?

DEC is a centralised IT system used by HMRC's Counter Avoidance Division. In theory it is meant to bring together all demographic, legal, tax and historic information on tax avoiders.

I am advised that the DEC system has now cost £40 million. Unfortunately it does not work terribly well, if at all.

I understand that much of the key documentation around avoidance cases sent to Counter Avoidance, from local HMRC offices from inspectors told to drop and transfer cases to Counter Avoidance, has disappeared (been lost).

The value of these lost cases in terms of tax revenue is, so I understand, £2BN."

Moving forward to the present time, I am advised by a loyal reader that due to cost and lack of functionality Jennie Granger ordered (or rather was told to order) this project cease and DEC scrapped before a tax record was ever loaded onto it.

Seemingly the final cost was over £43 million.

Granger left HMRC as I noted in April (voluntarily or pushed?).

Seemingly, so I am advised, David Richardson, her replacement, has also been told to go by next April.

Tax does have to be taxing.

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Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

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However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

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To find out more, please use this link Solar Tax Investigation Insurance



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Who, Why or What is DEC?

My thanks to a loyal reader who has advised me that there may be issues wrt DEC.

Who, why, or what is DEC?

DEC is a centralised IT system used by HMRC's Counter Avoidance Division. In theory it is meant to bring together all demographic, legal, tax and historic information on tax avoiders.

I am advised that the DEC system has now cost £40 million. Unfortunately it does not work terribly well, if at all.

I understand that much of the key documentation around avoidance cases sent to Counter Avoidance, from local HMRC offices from inspectors told to drop and transfer cases to Counter Avoidance, has disappeared (been lost).

The value of these lost cases in terms of tax revenue is, so I understand, £2BN.

I would be interested to hear more details about DEC, please feel free to email me on an anonymous basis.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Freedom

Dear HM Revenue and Customs,

Please pass this on to the person who conducts Freedom of Information reviews.

I am writing to request an internal review of HM Revenue and Customs's handling of my FOI request 'DEC'.

Please also provide me with details of when any cases now on DEC were transferred from other systems and why the FoI was delayed and who was handling it.

Thank you.

A full history of my FOI request and all correspondence is available on the Internet at this address: https://www.whatdotheyknow.com/request/dec

Yours faithfully,

ken frost

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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New FOI Submitted Re DEC Communications

The progress (or otherwise) of the new FOI can be viewed here:

DEC Communications Records

Tax does have to be taxing.

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Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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HMRC Miss FOI Deadline

On 7th October I submitted a Freedom of Information Request to HMRC about Digital Evidence Capability (DEC), HMRC have missed the deadline for responding.

I have now submitted a request for an internal review.

Feel free to follow the progress, or otherwise, of the FOI via this link DEC FOI.

Tax does have to be taxing.

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Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

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What is Solar Tax Investigation Insurance?

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DEC FOI

'DEC' https://t.co/5ywqRckOS2 via @whatdotheyknow

— Ken Frost (@ken_frost) October 7, 2016

Tax does have to be taxing.

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Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

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Online Filing

My thanks to a loyal reader who sent me a copy of a letter that he has sent to HMRC, concering probelms he has had trying to file his tax return online.

Relatively "small beer" compared with the other issues in HMRC being reported, and due to come out!

"Dear Sirs,

Following HMRC recommendations in SA150-59 (How to fill in your Tax Return) I opted to file on-line.

This document makes it clear that the on-line filing deadline is 31 January 2010.

Your reminder letter dated ** Dec 2009 (received 3 January 2010) underlines this date. At the end of the final paragraph on page 2 the letter adds that 7 days are required to receive an activation pin.

Neither HMRC TV publicity nor any of the HMRC Tax Return documentation mentions this requirement.

Not arriving until 3 January 2010 this letter still allowed 21 days for filing.

I registered on-line and waited 7 days for the activation pin without result.

On ** January I called the on-line help desk. I was advised to wait another week.
(call-ref:***)

Concerned at the continued non-delivery of the activation pin, on ** January (13 days later) I called the on-line help desk. (case ref:***).

On 27 Jan I was informed to wait a further 3 days and then apply for a new activation pin which will be sent in a further 7 days, which will arrive while I am away from this address **-** Feb 2010.

I have made every effort to follow HMRC recommendations and instructions to the letter. Due to problems in HMRC this has been without result. I therefore expect that any penalty will be waived in full.

Yours faithfully..."

Tax does have to be taxing.

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Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

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HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Lost AML Form Cost Agent £15K - HMRC Fucks Up Again

In the world of accounting and finance, precision, accuracy, and adherence to rules are not just desirable traits - they are the very foundation upon which the industry stands. However, it seems that these principles do not always apply to the institutions that govern these industries. A recent incident involving His Majesty's Revenue and Customs (HMRC) serves as a stark reminder of this fact.

The Incident

An accounting firm recently found itself in the eye of a storm, all due to a misplaced anti-money laundering form at the HMRC headquarters. This seemingly minor oversight had major repercussions, leading to the firm's agent access being revoked. The result? A loss of a month's worth of work and the firm teetering on the brink of closure.

The Fallout

The suspension of the agent account meant that the firm was unable to carry out its regular operations, leading to significant delays and financial losses. The firm, like many others, relies on the agent account to interact with HMRC, submit forms, and carry out other necessary tasks. The suspension effectively crippled the firm, highlighting the disproportionate impact of the HMRC's error.

As per Accountingweb:

“I set up my firm five years ago and it grew during Covid. From the start, I’ve been supervised for money laundering by ICAEW. The only interaction I have with HMRC is as an agent.

In September 2021, I received a request status from HMRC asking who is supervising me for money laundering. I returned the AML 103 form in the post as requested to HMRC in October 2021.

Unfortunately, it landed at HMRC and went into the wrong workflow. It later transpired that the person who received it took 53 days to get through their workload, get to my form and realise it had nothing to do with them, at which point they gave it back to the main switchboard. 

In the meantime, I was struck off as a non-responder. This resulted in my agent status being removed, along with my ability to submit corporation tax and self assessment returns, which make up the bulk of my work. This was on 2 Dec 2021, at my firm’s busiest time.

With no agent services login, I lost the ability to trade – it was awful. I tried calling, writing and emailing but just couldn’t get an answer.

The ‘agent maintainer’ team is apparently responsible for this, but they don’t accept emails or phone calls. There’s no follow-up, you can’t speak to this team – it’s an almost mythical department. They have a ‘service level agreement’ to respond to letters within 40 days, but that’s no good when I can’t run my business.

Because I’ve previously worked on committees for ICAEW, I was fortunate to know the right people to call at the Institute. After a bit of back and forth, they had someone literally walk the corridors of HMRC to find this team and ask them. Without this, they’d have been completely unaccountable. 

I lost a whole month's business, around £15,000. It had a catastrophic impact on my firm, which was in its infancy and could have gone under. As it was, I had a terrible January with a whole pile of work and a massive cashflow hole – with all the costs of December with no income. I spent the next six to eight months just recovering.  

Naturally, I complained and got my MP involved. By March 2022, HMRC accepted my complaint and offered me £150 compensation. This was not at all acceptable and they said I had the right to approach the adjudicator’s office to make an independent complaint.

The adjudicator’s office came back and said they do not have jurisdiction because I’m technically not a taxpayer – in this instance, I’m treated as a service provider. The best they said they could do was to attempt to launch a Parliamentary inquiry – that’s obviously not what I was looking for.

I completely accept that it’s a process gone wrong, not someone at HMRC who hates me. But it’s their process and nobody dealt with it. If the ICAEW hadn’t got behind this, who knows where I’d be?

My case was very clearly an internal gaff, which HMRC admitted, but they were still unwilling to do anything or take responsibility. Agents don’t get a right of appeal when something like this happens, there’s no higher body. 

HMRC also needs to come to the realisation that accountants in practice are not the enemy.”

HMRC's Role

While mistakes happen in every organisation, the magnitude of the impact in this case raises questions about HMRC's processes and systems. 

How did a single misplaced form lead to such drastic consequences? 

Why was there no system in place to prevent such an oversight, or at least to mitigate its effects?

The Need for Change

This incident underscores the need for HMRC to review its procedures and implement safeguards to prevent such occurrences in the future. It is crucial for HMRC to remember that its actions and decisions have a far-reaching impact on businesses and individuals alike. A misplaced form should not have the power to bring a business to its knees.

In conclusion, HMRC must acknowledge its responsibility towards the entities it governs. A review of its systems and procedures is not just desirable, but necessary. After all, in the world of finance and accounting, even a small misstep can have a domino effect, leading to consequences far greater than the initial error.

Tax does have to be taxing.

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FOI Response Expected By 19 December 2016

 

 

Those of you following my FOI request to HMRC wrt DEC, may be interested to know that some form of response will emerge from the HMRC bunker by 19 December:

"HM Revenue and Customs 23 November 2016

 

Thank you for your correspondence requesting an internal review of a request made to HMRC under the Freedom of Information Act 2000 (reference FOI 2016/00034).

A review will be carried out and we expect to provide the review response by 19 December 2016

Thank you

HMRC
Freedom of Information Act Team

show quoted sections"

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Unnecessary Filing

The tax filing year end that has just passed was, apparently, the busiest ever with more people filing SA than records began etc etc.

However, it seems that some of those who were so keen to file may have in fact been wasting their time.

The Telegraph reports that those who owed less than £3,000 in tax may be needlessly filling in self-assessment forms.

The reason for the Telegraph's doubt about the necessity of some filling in an SA form?

None other than HMRC itself!

People who owed small amounts of tax from savings income or occasional extra work possibly need not have bothered, HMRC said. Instead of wasting hours compiling statements and invoices and completing forms, the money could have been deducted automatically from their pay packets from April.

Stuart Phillips, director of tax practice at The Private Office, the financial advisers, said:

“It is a great shame that in this country we are incredibly honest when it comes to paying our taxes, but HMRC doesn’t seem to be able to tell people the easiest way to do so.”

HMRC is able to recover up to £3,000 through the coding system.

However, the HMRC spokesman said that people who telephoned its helpline would be advised against filing a self-assessment return only if their untaxed income was less than £2,500.

That being said, as per HMRC:

“We don’t want anyone to fill in a tax return unless it’s absolutely necessary.”

However, taxpayers who owed less than £3,000 had until Dec 30 to request exemption.

Tax does have to be taxing.

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Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

HMRC Use "Nudge" Techniques To Persuade People To Give Up Their Legal Rights - Thread

HMRC presented evidence to the Public Accounts Committee in Dec 2012 that they were going to conduct an experiment to see if they could manipulate people to give up their legal rights in a legitimate dispute with HMRC which HMRC had historically been unable to win in the Courts pic.twitter.com/ZlWAyqwUDG

— Gordon Berry (@wealthagent) June 20, 2018

The thread is live, and worth reading.


Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

"Scams For Scumbags" To Appeal Against HMRC

The Guardian reports that Ingenious, the investment firm that persuaded celebrities, sports stars and business leaders to invest in controversial film partnership schemes will today launch an appeal against HMRC that could cost  HMRC up to £1bn.

Stars from the worlds of sport and entertainment, including David Beckham, Ant and Dec and Jeremy Paxman, are among those who put money into investment schemes run by the Ingenious Group, a financing company that funded more than 60 films including Avatar and Brooklyn.

In what is set to be the longest tax tribunal appeal ever, Ingenious will fight to overturn the court’s decision that HMRC was correct in deciding that the investments should not give rise to tax relief for their investors.

Ingenious, which said it was offering legitimate investment in the film industry, has been accused by HMRC of tax avoidance (which is perfectly legal), with a former HMRC boss (David Hartnett) describing its schemes as “scams for scumbags”.

An estimated £620m worth of tax relief was claimed by investors, which, combined with interest, means £1bn is at stake if HMRC loses the case.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

The One Way Street

My thanks to a loyal reader who sent me the following examples (I have redacted certain details) about communication delays when dealing with HMRC:

"I wrote to the correct tax office in May 2010 to request a tax refund, enclosing P45/P60 details to support my simple calculation £** overpayment. Cheque received yesterday, 8 months later. No interest and had to be chased twice in writing.

I am chasing a VAT overpayment of over £**K for a client. Has to be reduced to £**K as only 4 years can be allowed (HMRC can go back 6 I believe). This is a corner shop. £**K is 2 years entire net profit. Why?

Letter with correct VAT sent 5 Dec 2010. HMRC is currently (as of this morning) reading the post from last week of November. Why?

I am working with Tribunal service for a client charged with penalties of £*K for three missing CIS returns. He earns £*K a year. HMRC supposed to have 42 days to respond to me and Tribunal. Have so far been allowed 150 days. My clients haven't slept for 4 months. Why?

Client been given 7 days by Debt Enforcement office to avoid seizing of assets. Investigation so far shows HMRC has 'lost' all payments made in 2008 and 2009; that it has no record of the telephone time to pay agreement and has also lost the P35s sent twice by recorded delivery. My 64-8 from August 2010 also not processed or lost. (along with 3 or 4 other 64-8s)

I only have 50 clients and these are four different ones I am dealing with this month alone...."

It does seem to be rather a "one way" street when communicating with HMRC, in that the taxpayer gets jumped on if he/she misses a deadline but not vice versa.

Tax does have to be taxing.

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What is TAXWISE?

TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Mark Nellthorp - The Silence Will Fall When The Question Is Asked

As many of you are aware, the Guardian published an interesting article on Friday about the dismissal in September of Mark Nellthorp an HMRC deputy director and diversity officer.

Nellthorp was sacked for a catalogue of sexual misconduct claims made by five junior female employees.

Additionally two female assistant directors at HMRC who worked closely with Nellthorp were suspended on full pay last February, after being accused of helping facilitate his behaviour. They are still being investigated.

An independent report carried out by former John Lewis HR director Laura Whyte, found that HMRC employees tolerate a significant amount of “low level” poor behaviour that would not be acceptable in other environments.

It listed “swearing, breaching confidentiality” and “ mocking colleagues” among the actions demonstrated.

HMRC on Friday (coincidentally) published the review’s report, which recommended an “urgent redesign of the grievance process” including more use of “mediation and early resolution”, among other changes.

It said the review did not find “any individual within HMRC who had confidence in the grievance process”. Staff felt they tolerated a lot of “low-level poor behaviours” not accepted in other workplaces, including swearing, breaching confidentiality and mocking colleagues.

The Nellthorp article "amuses" me in one sense (not regarding his conduct etc), namely because I submitted the following FOI to HMRC in October 2018:

"Dear HM Revenue and Customs,

Please can you advise me of the following:

1 Is Mark Nellthorp still in your employ?

2 If he has left please advise when?

3 What were the reasons for his departure?

Thank you

Yours faithfully,

Ken Frost"

The response from HMRC was "amusing" in that they refused to answer it, and noted that they could
neither confirm or deny that they had information about him.

"Under section 40 of the FOIA I can neither confirm nor deny whether HMRC holds information falling within scope of your request. The fact that section 40 has been cited should not be taken as indication that the information requested is or is not held by HMRC."

Ironically I have made other FOI requests on a number of occasions relating to connected issues, none of which HMRC were particularly keen to answer fully. The FOI's and HMRC's response can be viewed here.

In addition to that, Nellthorp has featured a few times on this site over the years, eg this gem from November 2011:

"My thanks to a loyal reader who dropped me a note about an event last week for Senior Managers in Personal Tax, which was held at Lawress Hall, one of the subjects being "Rebranding Pacesetter".

Apparently one of the speakers was Mark Nellthorp, an HMRC deputy director (he is also diversity officer).

Anyhoo, I am given to understand that Mr Nellthorp's speech about rebranding Pacesetter allegedly included suggestions that old people have poor hygiene and smell, and how cornflakes stop you masturbating.

When asked by someone about an email he sent concerning job relocations, he allegedly made reference to Hitler and modern warfare.

I dare say that, "in context", the above all made perfect sense. "

Here's another from September 2017:

"My thanks to a loyal reader who has written to me about multiple staff survey responses being submitted by a certain manager in a certain HMRC department (the results are published on the HMRC intranet).

"...You see ***'s (redacted by Ken) group in **** was around 100 staff at that time.
At the close of the staff survey period the published response rate for ***'s group was 130 responses out of 100 people. i.e. 130%!!!!
Generally around 60 responses would be expected.
This is fully checkable as number of responses are published with the survey.
Unsurprisingly his groups scores on certain key questions were 10-15 points above the HMRC average.
The point is that apparently you can submit multiple returns on the survey (the system does not stop you), and many staff in ***'s team are fully aware he and a few close 'minions' submit multiple positive responses for his area and have been doing so for several years.
Unfortunately the past couple of years he has gone over quota a bit.....
It not who votes that counts. It's who xeroxes the ballot paper."

Are there no depths to which HMRC will sink?

Ironically, despite the manipulation, *** still managed to score 20%+ response rate on the bullying question (people who felt they were being bullied or had witnessed it) over his team of 100!!"

The question that you may ponder is who helped the manager put in multiple responses?

Posts about Digital Evidence Capability (DEC) also are worth a read.

It is therefore clear that HMRC knew about Nellthorp for quite some time.

There are of course many questions that might be asked about the details, being an experienced auditor/fraud investigator such questions that I would ask if I were conducting a review/investigation include the following:

- who were the enablers?
- were promotions made on the basis of merit or favouritism?
- were roles advertised before they were filled?
- was there an internal cover up?
- what went on a Lawress Hall one night?


But I don't want to bore you, and I'm sure that HMRC have this well covered.

However, here is my advice to members of staff, taxpayers, MPs and journalists if they want to determine if HMRC really is rotten or not.

Ask one question of Sir Jon (sorry Sir Jonathan) Thompson.

But what is it I hear you ask?

THERE IS ONE QUESTION

THE ONLY QUESTION

HIDDEN IN PLAIN SIGHT

IS THERE MORE TO THIS THAT HAS NOT YET BEEN ADMITTED TO BY HMRC?

Tax does have to be taxing.

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