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.”