It has said it will make payments for worry or distress in instances where the taxpayer is elderly or ill, or if personal information is divulged to a third party.
Additionally, the Revenue offers compensation when it delays dealing with a taxpayer’s affairs or when it gets things seriously or persistently wrong.
Most of the Revenue’s compensation payouts fall into the £50 to £2,000 range, and it is known to have coughed up £50,000 to cover professional fees unnecessarily incurred by a company subjected to a tax investigation.
A spokeswoman for the Revenue confirmed it paid out £1.7m for failing to achieve the high quality standards it set itself to the year ending March 2000, and received 42,000 complaints.
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