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Need to address Income Tax errors- Mc Laughlin MLA

6 July, 2007


Sinn Féin Economy Spokesperson, Mitchel McLaughlin MLA (South Antrim) has said that there needs to an overhaul of the Income tax calculation system after it was revealed in a new report that Income Tax errors have effected 1 million people

Mitchel McLaughlin said

"A report by The Audit Office claims that in 2006-07 while the Revenue and Customs calculated the tax correctly in 95% of cases, mistakes in the system lead to one million taxpayers paying the wrong amount of income tax last year"

"Of the 5% of cases in which mistakes were made £157m was overpaid and £125m went uncollected. There needs to a better system in place to ensure this doesn't happen because at the end of every statistic is real people and mistakes can have a devastating effect on their daily lives"

"We have seen the effects of mistakes made in recent years with Family Tax Credits and the Child Support Agency and there have been repeated calls for changes to those systems .There is a clear need for an overhaul of the system which calculates Income tax and is leading to these problems. I hope that ongoing efforts to computerise its clerical processes will lead to a decrease in the number of mistakes being made"

Ends

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