Thursday, November 24, 2005

EDS to Pay GBP 71.25M to HMRC for Faulty IT System

EDS, the UK-based IT services provider, has negotiated a settlement with Her Majesty’s Revenue & Customs (HMRC), the revenue department of the UK, regarding the compensation for certain irregularities in IT system developed by EDS for HMRC. The settlement will be concluded with payments totaling GBP 71.25 million.

EDS had developed an IT system for HMRC to support the 2003 launch and subsequent operation of Tax Credits. HMRC claimed that because of the faulty IT system it incurred substantial losses. The specific terms of the settlement agreement are confidential and the settlement does not impact previously stated EDS’ estimates for 4Q 2005.

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