Feeds

EDS pays for tax failure

Final divorce settlement

The Power of One Infographic

EDS has paid off Her Majesty's Revenue and Customs for its failure to provide a working tax credit system.

EDS worked on the system from 1994 to 2004. The launch in 2003 was a disaster and led to over-payments totalling £2bn to almost two million people. Attempts by the Revenue to claw this money back led to even worse problems for some of the UK's poorest people.

In 2005 HMRC sacked EDS and installed CapGemini to run the project.

As part of their separation deal EDS agreed to pay a total £71.25m in installments. HMRC said yesterday that EDS had decided to make a one-off payment to settle their dispute - presumably for less than the total of £71.25m had they chosen to pay it off over time.

The two sides blamed each other for the failure of the project. A report from the Parliamentary Ombudsman said: "Indeed, it is difficult to do justice to the sheer range of problems which have affected customers’ awards."

Although EDS got a lot of flack for the failure others were just as quick to blame the Revenue for mismanaging the outsourcing and frequently changing the spec of the project. ®

HP ProLiant Gen8: Integrated lifecycle automation

More from The Register

next story
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
UK government officially adopts Open Document Format
Microsoft insurgency fails, earns snarky remark from UK digital services head
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
MPs wave through Blighty's 'EMERGENCY' surveillance laws
Only 49 politcos voted against DRIP bill
Help yourself to anyone's photos FOR FREE, suggests UK.gov
Copyright law reforms will keep m'learned friends busy
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.