EDS still owes HMRC

MPs have called on the government to take legal action against outsourcing giant EDS to recoup the millions of pounds the company still owes over the tax-credits IT fiasco.

In a settlement EDS agreed to pay £71.25m to HM Revenue & Customs (HMRC) due to problems with the tax-credit computer system it designed.

Difficulties with the scheme resulted in HMRC overpaying £6bn in tax credits during the three years after its introduction in 2003.

EDS agreed it would pay £26.5m of the settlement when it was awarded new contracts by the government, but a report by parliamentary spending watchdog the Public Accounts Committee (PAC) has found the IT services company has repaid “little” of this sum — because the government has awarded EDS less work than expected.

Posted by on 02/07 at 09:38 AM

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