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Inland Revenue halts on-line tax filing

OUT-LAW News, 31/05/2002

The Inland Revenue this week suspended its on-line self-assessment tax return system after complaints from some users that, when logging in, they could see the details of other users. The security breach is being seen as an embarrassing blow to the Government’s promotion of on-line services that it plans to make mandatory.

The following statement appeared today on the Revenue’s site:

“The security of our customers' data is of paramount importance to us. A very small number of people told us that they had seen data relating to other people. When we learnt that we decided to temporarily withdraw the SA On-line service and we are now working around the clock to get to the bottom of the problem. It is still possible to send in returns on-line using an alternative product.”

Of the several million tax returns filed last year, only 75,000 were filed on-line. The Government plans to force an increase. In its current Finance Bill, there is a section called “Mandatory e-filing.” This empowers the Inland Revenue’s Commissioners to pass regulations requiring use by self-employed individuals and small businesses of the on-line filing system. Among the penalties for failure to comply is a fine of up to £3,000.

Earlier this month, the Guardian newspaper questioned the Inland Revenue about this provision. A spokesperson explained that the enforcement measures are unlikely to be in place “until 2006 at the earliest.”

 

 

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