Feeds

EDS pays for tax failure

Final divorce settlement

Next gen security for virtualised datacentres

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. ®

The essential guide to IT transformation

More from The Register

next story
The police are WRONG: Watching YouTube videos is NOT illegal
And our man Corfield is pretty bloody cross about it
China hopes home-grown OS will oust Microsoft
Doesn't much like Apple or Google, either
UK government accused of hiding TRUTH about Universal Credit fiasco
'Reset rating keeps secrets on one-dole-to-rule-them-all plan', say MPs
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
e-Borders fiasco: Brits stung for £224m after US IT giant sues UK govt
Defeat to Raytheon branded 'catastrophic result'
Don't even THINK about copyright violation, says Indian state
Pre-emptive arrest for pirates in Karnataka
Yes, but what are your plans if a DRAGON attacks?
Local UK gov outs most ridiculous FoI requests...
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?