Post Office ought to be ‘ended in current form’ after Horizon scandal – tax skilled
T
he Post Office ought to “be ended in its current form” and run as a mutual, in line with the top of non-profit organisation Tax Policy Associates.
Dan Neidle, tax lawyer and founding father of the group, described the Post Office Horizon scandal as “the single greatest challenge to the rule of law”.
The scandal noticed greater than 700 Post Office department managers handed legal convictions after defective Fujitsu accounting software program made it seem as if cash was lacking.
A public enquiry into the scandal – which has been described as probably the most widespread miscarriage of justice in UK historical past – was launched after a sequence of convictions have been overturned after the Post Office settled the instances of 555 claimants.
No privately owned enterprise would ever have survived this, and it’s unsuitable that the Post Office’s present standing signifies that it has
In a speech to the City of London Solicitors’ Company, Mr Neidle mentioned the Post Office would have collapsed if it have been a non-public enterprise amid the aftermath of the prolonged authorized battle.
He mentioned: “The Post Office should itself suffer the ultimate penalty, and be ended in its current form.
“No privately owned business would ever have survived this, and it’s wrong that the Post Office’s current status means that it has.
“The business we all know and rely on should be given to past, current and future postmasters, and run as a mutual, with continuing government support where necessary.
“The remainder of the business should continue for the sole purpose of compensating postmasters.”
In 2021, Post Office chief government officer Nick Read indicated that the enterprise might search to share profitability with postmasters, elevating hypothesis it might transfer in direction of a type of mutualisation.
“We must strike a new deal with postmasters which recognises that, without them, there is no Post Office,” he mentioned in a speech.
“And, as this partnership takes shape and breeds success over time, we must find a way for them to share, directly, in its profitability.”
It comes after reviews that beforehand convicted postmasters have seen compensation pay-outs closely lowered, with the Daily Mail reporting how an 80-year-old former postmaster noticed his pay-out lowered from round £330,000 to £8,000 as a result of tax and chapter proceedings.
Mr Neidle claimed that the compensation scheme is “itself a scandal”.
“We need to change the incentives so nothing like this ever happens again, and demonstrate to everybody the consequences of so horrifying an abuse of the legal system,” he added.
A Post Office spokesman mentioned: “We are acutely aware of the severity of the impacts on some postmasters’ lives caused by Post Office’s past failings.
“The scheme’s independent advisory panel of experts assesses individual claims and there are no caps on the compensation offered.
“Offer letters strongly encourage postmasters to take independent legal advice, the cost of which is reimbursed.
“Legal costs are also provided for postmasters who wish to dispute an offer, together with an interim payment of up to 80% of the proposed settlement is available to help alleviate financial pressures.
“Offers totalling around £100 million have been made to all but 16 of the 2,400 applicants in the Scheme, the vast majority of which are already agreed and paid.”
Earlier this yr, Mr Neidle additionally helped to disclose that former Conservative chair Nadhim Zahawi was beneath investigation over his tax affairs.
The speech is certainly one of a sequence of talks for the City of London Solicitors’ Company as a part of its Food for Thought initiative.