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.

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"

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.

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"

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.

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"

ICO Tightens HMRC FOI Deadline

This recently in from the Information Commissioner's Office:

"Dear Mr Frost

Thank you for bringing your complaint to the Commissioner's attention.

I have spoken to HMRC today and advised them that a response should be issued within the next ten working days.

In the event that you do not receive a response by close of business on Tuesday 13 December 2016 please contact me by email or on the number below.

Yours sincerely

****
Lead case officer"

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"

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"

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



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 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.

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"

DEC FOI

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

— Ken Frost (@ken_frost) October 7, 2016

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"

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"