Tax returns to go offshore?
HMRC reported to be mulling the idea of outsourcing tax return processing to India
HMRC is thought to be looking at outsourcing the processing of tax returns to
foreign companies in another drive to reduce costs, it has been reported.
The tax body and its Aspire consortium of IT contractors, which includes
Capgemini and Fujitsu, are studying a range of options in order to save £200m a
year, one of which is the offshoring of tax returns, most likely to India,
reports tax-news.com
Although there are not yet specific proposals in relation to this option, it
will raise concerns over the privacy of data, especially after the same body
lost the details of 25 million people in 2007.
However, HMRC has insisted that under the terms of the Aspire contract, IT
cannot be delivered from outside the UK, and that there are no plans to change
this restriction.