HMRC criticised over EDS deal. By Dan Martin
A multi-million pound compensation deal agreed between HM Revenue & Customs (HMRC) and computer firm EDS could unjustly influence how future government contracts are awarded, MPs have warned.
The comments came during a meeting of the Treasury select committee in which HMRC chairman Sir David Varney was questioned over the deal.
The compensation was imposed following failures of the tax credits system set up by EDS. It was arranged so that £24 million of the £71 million payment was dependent on the computer company securing future government contracts.