According to the report, recent security breaches and technical problems have affected public confidence in the on-line service, which currently has fewer than 80,000 users – less than 1% of those who are taxable.
The committee argues that the Revenue’s £200 million electronic strategy is poor and suggested that it should pilot and test new systems on a more systematic basis. It is also calling for better incentives for taxpayers to submit their tax returns electronically.
In May, the Revenue was forced to suspend its on-line self assessment tax service following complaints by users who could access confidential internet files and view other people’s tax reviews. It only recently went back on-line.