Feeds

EDS pays for tax failure

Final divorce settlement

Boost IT visibility and business value

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. ®

Boost IT visibility and business value

More from The Register

next story
Just TWO climate committee MPs contradict IPCC: The two with SCIENCE degrees
'Greenhouse effect is real, but as for the rest of it ...'
'Blow it up': Plods pop round for chat with Commonwealth Games tweeter
You'd better not be talking about the council's housing plans
Arrr: Freetard-bothering Digital Economy Act tied up, thrown in the hold
Ministry of Fun confirms: Yes, we're busy doing nothing
Help yourself to anyone's photos FOR FREE, suggests UK.gov
Copyright law reforms will keep m'learned friends busy
Apple smacked with privacy sueball over Location Services
Class action launched on behalf of 100 million iPhone owners
Adam Afriyie MP: Smart meters are NOT so smart
Mega-costly gas 'n' 'leccy totting-up tech not worth it - Tory MP
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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
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.