Revenue denies losing millions of tax records

The Revenue says it has lost nothing and that it only has ‘open records’ on a number of taxpayers which results from being supplied with incomplete information.

Press reports claimed around 5m records for 1998-1999 had been lost due to information not being transferred properly from the Revenue’s National Insurance Recording system, run by Andersen Consulting, to COP, the PAYE computer.

Speculatiion has mounted that millions of taxpayers would get a tax holiday.

The NIRS2 system has so far cost Andersen Consulting millions and the latest reports will come as a further embarrasment.

NIRS2 cost Andersen £100m to develop and a further £20 since being installed. However the firm received only £19m in fees.

The Revenue said this morning that the ‘open records’ problem was an annual event.

‘This is not because the IR or its computer systems have lost any information or there is any problem with the systems. But because, for example, complete information has not been received from the employer or someone who was an employee in an earlier tax year has moved into self employment,’ a spokesman said.

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