The self-assessment system came under scrutiny in the House of Lords recently via some written questions.
The self-assessment system came under scrutiny in the House of Lords recently via some written questions.
Asked if the self-assessment tax system was functioning adequately, Lord McIntosh of Haringey said that it was. Over the past five years, approximately 90 per cent of self-assessment tax returns were received by the due date, compared to half under the previous system. For the year 2000-01, 90.6 per cent were received on time. He added that the computer systems used for processing tax returns have 'proved to be very robust', over the past averaging 99.63 per cent system availability against a target of 98.5 per cent.
In reply to a question about how much the self-assessment system has decreased or increased the cost of the Revenue, Lord McIntosh said that the introduction of self assessment was a '15-year project involving investment of £839 million for the Revenue, which should result in net administrative savings of £500 million by 2007-08'.
Finally, concerning whether the tax system dealt fairly with rich and poor people, Lord McIntosh said that while 'recognising the right of businesses and individuals to manage their tax affairs efficiently', the Government was 'committed to ensuring a fairer tax system by countering abuses and contrived avoidance schemes'.
(Source: Lords Hansard, 15 May 2002, Vol 635, No 138, cols WA42 to WA44.)
