14 November 2007
A financial pressure group slammed banks and tax authorites yesterday for taking advantage of vulnerable OAPs.
Research conducted by the Low Incomes Tax Reform Group (LITRG) showed that elderly people who are not taxpayers are being consistently denied help in stopping tax being deducted from their accounts' interest.
According to LITRG, banks should always check to see if a customer pays tax - and then show them how to go about claiming the deducted tax back, in what is known as an R85 procedure.
However, this service was only fully performed in 18% of the banks anonymously visited by the organisation.
The harshest criticism from LITRG was, however, reserved for HM Revenue & Customs (HMRC) - which collects taxes in the UK.
"HMRC is really to blame, because it has delegated one of its important communication and education functions to the banks when it is not in a position properly to police what happens - and expects the pensioner to be all-knowing."
© 2008 Adfero Ltd
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