Fraud – NAO still in dark over Allcock

A National Audit Office report into the Inland Revenue’s Michael Allcock scandal fails to reveal who was responsible for overseeing the maverick tax inspector.

Instead, the report says nine managers were investigated, with only one disciplined. It also reveals details of the collusion among Allcock’s staff including false accounting and expenses abuse.

Allcock, senior inspector with the Special Compliance Office, was jailed for five years for accepting bribes in return for favourable tax treatment between 1987 and 1992.

His actions went unchecked as he raked in #20m a year in settlements from taxpayers.

An NAO spokesman said: ‘There was a general lack of management control.’

The report reveals five of Allcock’s staff were demoted, forced to take pay cuts and fined for their part in the affair. The Revenue tightened controls, but the NAO called for staff vetting.

John Gwyer, tax investigations partner at Levy Gee, said: ‘The other officers were disciplined for serious disciplinary breaches.

Why weren’t they dismissed? Integrity is not negotiable.’

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