Internet war declared on ‘bullying’ taxman Sunday Times
From The Sunday Times April 6, 2008 Link here
A TAXPAYER subjected to a lengthy investigation by the Revenue has set up a website to expose what he describes as its bullying, intimidation and waste.
Nick Morgan, a freelance journalist who regularly uses the self-assessment tax system, was told three years ago that an investigation had been opened into his returns. Even though the case involved only £2,500, Morgan says the investigation “quickly snowballed into a nightmare”.
Inspectors from Her Majesty’s Revenue and Customs (HMRC) took a forensic interest in his finances, he says, demanding to know details such as how many pieces of paper he used in correspondence and the number of business calls made to London. They even questioned him about £10 he spent on a biography of David Beckham for research purposes.
Morgan says he was confronted with a “frightening blur of figures” and informed that there was “a lot wrong” with his tax return and that he had “shown neglect”. He was accused, incorrectly, of receiving undeclared payments amounting to £325.
Infuriated by the aggressive nature of the HMRC inquiries, Morgan filed a request under the 1998 Data Protection Act, which allows anyone to see most of the files held on them by HMRC. He discovered that the HMRC’s internal view of his case was different from the manner in which he was treated.
“I was astounded,” Morgan said. “In a phone call, the investigating officer had told me that things were very bad for me and I was a terrible case exhibiting gross negligence; but in her e-mails to a colleague she drew a very different picture.”
In one e-mail, the inspector wrote: “I’m feeling a bit lost in all this . . . it’s not a large settlement.”
The investigation may have cost as much as £50,000, according to Stephen Camm, a former HMRC investigator who is head of tax investigations at Price Waterhouse Coopers. Yet HMRC has offered to settle with Morgan if he will pay just £2,530.
HMRC enjoys draconian powers over taxpayers. Investigations can be started at random, without evidence of wrongdoing. If a “discovery” is made, the previous 20 years of a taxpayers’ finances can come under scrutiny. HMRC can levy hefty fines for offences as simple as late payment – and the burden is on the taxpayer to prove his or her innocence.
More than 99,000 taxpayers complained about HMRC last year. Morgan fought back by inundating the department with e-mails.
“I send on average 800 circular e-mails to around 400 staff every week,” he said. “I know it’s had an effect because I’ve got copies of e-mails from the bosses at HMRC asking their investigators to ‘get this thing sorted out’.”
He has even sent e-mails from abroad, telling the recipients of his holiday weather. HMRC says some of his e-mails have been “inappropriate”.
Morgan retorted: “HMRC have a whole range of bullying tactics. They are all legal and practised every day.”
His website is www.tax-hell.co.uk
