An ombudsman has ruled that HM Revenue and Customs showed "reckless disregard" for an Aberdeen businessman who claimed he was wrongly declared bankrupt. Source BBC.
Ms Abraham, the Parliamentary and Health Service Ombudsman, declared:
"It appears that HMRC's actions were motivated more by a desire to defend their position than by any recognition of the serious injustice suffered by Mr Fowler.
HMRC pursued Mr Fowler with a reckless disregard for his rights and the consequences of their actions – consequences Mr Fowler has had to live with for five years.
Post sequestration, HMRC's actions could legitimately be described as self serving and mean spirited. In their desire to defend their own position, HMRC completely lost sight of the devastating impact that their mistake had had on Mr Fowler.
They neither apologised to him, nor gave any thought to remedying the situation. That is not the standard of behaviour I would expect to see from a government department."
The report continues:
"Any competent check of HMRC's computer system would have identified that the debt had been paid, yet no action appears to have been taken.
These were very serious failings. It is entirely unacceptable HMRC set the process in train and then, in effect, absented themselves.
Given the gravity of the situation, the almost total lack of care exhibited by HMRC is indefensible and this fact needs to be recognised by them. It appears that HMRC's actions were motivated more by a desire to defend their position than by any recognition of the serious injustice suffered by Mr Fowler."
Source The Scotsman.
How wise is it to grant HMRC more powers?
Tax does have to be taxing.
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"
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ReplyDeleteI have a firm that I am currently representing who have paid £60k in tax over the last 3 years of which the Revenue have no record of (we have supplied irrefutable proof).
ReplyDeleteAt the same time my clients owe just over £26k In corporation tax.
The Result is that the HMRC issue a distraint notice against the firm for the 26k whilst dragging their feet about the £60k my clients should have 'on account'.
To remedy this my clients have laid out just over £10k in professional fees, including Council and we are still a fair way from getting it sorted.
Giving such a disjointed organisation more power will only lead to more cases of the right hand not knowing what the left is doing.
But then again do they care when they know it costs so much just to prove they are wrong. What do they care about a few innocents getting hit as well. At least everyone will fear the new beast, even it doesn't quite know it's own a**e from it's elbow.
My boss is being pursued by HMRC and almost had a seizure on Friday when he was told that they would be investigating him again this year. This will kill him.
ReplyDeletefor the record I work for a solicitor in a small town. He's been in business for over 20 years and as anyone knows, solicitors are very heavily regulated. Their accounting rules are more stringent than almost any other sector.
The inspector who frankly is out to get him has never investigated a solictor before. Our Accountant is appalled at his lack of basic knowledge of how we operate.
nevertheless it would appear that this inspector is on a mission to get my boss.
This will inevitably either kill him or cause him to give up the business. If he goes under, so do I.
You will appreciate that I have to post this anonymously.