Summary
I AM tempted to ask Archie White (November 29) to create his own system for collecting a local income tax. I can then wait until that system fails before announcing: "I told you so." He seems to think that just because computers can perform complex calculations, these wonderful machines will always do so without any problems. That is not always the case as has been evidenced by problems with the working tax credit system.
Clearly, computers are now essential for the operation of a local income tax system. The computers operated by HM Revenue and Customs will be able to match postcodes, national insurance numbers and local authority tax rates. But that does not mean that the correct amount of tax will be collected since without human intervention the computers cannot take account of income. The problem is in matching up the income and then collecting the tax due on that income. Banks and companies that pay dividends with tax deducted at source do not hold national insurance numbers.See the full content of this document
Extract
Problems of Collecting Local Income Tax
If a new local income tax is introduced, I p...
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