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Most of the tax officials quizzed over the loss of 25million people’s personal details have refused the quick and accurate procedure of having their interviews tape recorded. Kieran Poynter, chairman of PricewaterhouseCoopers, revealed the majority of HMRC’s staff agreed only to a written account of what they say, which, he warned, is “time consuming.” In his interim report into the data loss, he said it would be “quicker” if tax staff agreed to an audio recording, despite insisting that “all the HMRC officials…have been cooperative.” A spokeswoman for HMRC refused to be drawn on whether the department believes officials should opt for tape recordings instead of manuscripts, as part of the enquiry into how the lapse occurred. Since the review, HMRC has taken steps to improve data security, including creating a director of data security, and appointing ‘data guardians’ in every area of the organisation. The transfer of bulk data onto removable devices without encryption has been banned outright, and measures are in place to stop data being downloaded without safeguards. HMRC has also disabled all personal and laptop computers so data cannot be transferred on to media devices, with reactivation only possible upon approval by a senior manager. A lawyer for the IT industry reflected: “Whatever measures are taken, consolidated holdings of data are inherently insecure; some might say that the only safe approach is not to create them in the first place. Maybe they are right.” Some taxpayers fear the tax authority’s decision to suspend some of its IT systems has come at an inappropriate time. Responding to the concern, A HMRC spokeswoman said: “The interim IT measures will have no effect whatsoever on the self-assessment deadline or the ability of people to file their [tax] returns.” Mr Poynter expects to produce his final report into the data loss within “the first half” of this year. The Institute of Chartered Accountants in England and Wales has voiced concern about such an “unspecific time-frame”. But Paul Aplin, chairman of the ICAEW's Tax Faculty, told CUK: "I think that the final Poynter Review will give some food for thought but to date it seems to me that HMRC has acted swiftly and decisively to address data security in the wake of the lost CDs." Jan 11, 2008 Email this article Printer friendly page Previous Page
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