HMRC may see EDS in court.(Her Majesty's Revenue and Customs)(Electronic Data Systems Corp.)(Brief Article)

Financial Adviser, October, 2005

HM Revenue and Customs has failed to rule-out taking its former IT contractor EDS to court over the tax credits fiasco.

The debacle saw around 50,000 people on the tax-benefits system receive overpayments after the contractor installed new computer systems.

Bosses at the Revenue said discussions over a settlement were ongoing.

Patrick O'Brien, spokesman for the Revenue, said: "Court proceedings will begin if and when these discussions do not satisfactorily resolve the dispute."

Any court case relating to the IT flop could result in a payout of thousands by IT supplier EDS. The company offers solutions in corporate strategy, business planning and process management.

EDS declined to comment on its handling of tax credits.