Report Shows The Tax System Should be Simplified

12.00.00am BST (GMT +0100) Tue 21st Jun 2005

Commenting on the National Audit Office report on HM Revenue and Customs: Filing of Income Tax Self Assessment Returns, Liberal Democrat Shadow Chancellor, Vincent Cable MP said:

"This report highlights the complexities not only within the tax system but also within the way self assessment returns have been devised. This point is highlighted by the fact that the Revenue itself made mistakes in around half a million returns."

Commenting on the fact the Revenue estimates it incorrectly imposed late filing penalties on around 30,000 taxpayers in 2004, Vincent Cable MP added:

"These mistakes are likely to fall most severely on those less wealthy individuals who do not employ an accountant and so are less likely to question it. The Revenue must improve the accuracy of its recording to ensure that this number is minimised in the future.

"The Revenue must make it a priority to better communicate the penalties associated with late returns and encourage best practise in filling the forms out."