While the Revenue says the problem only ‘affects a very small number of cases’, Stephen Woolfe, financial controller at manufacturing company, Insul-8, said the Revenue had admitted to knowing about the problem for ‘some time’.
Woolfe had completed a clients corporation tax return using the Revenue’s self assessment module, which is available over the internet. And because profits chargeable to CT were below £10,000, he was ‘confident of my client not having to pay any tax’.
His client’s year-end was 30 June 2003, so the software split the profits and performed two tax calculations. But while it correctly assessed the first nine months at zero, the last three months was calculated at 30% tax payable.
He said he was eventually told by a Revenue helpdesk worker that its software was faulty and unable to cope with split financial years.
‘The problem referred to is a known fault which affects a very small number of cases,’ a Revenue spokesman told Accountancy Age. ‘The fault is being corrected in the next few days.
‘This should have been explained by the helpdesk but, in this case, clearly it wasn’t. On this occasion it seems the customer did not get the service they should have done and we are sorry for that.’
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