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Outrageous or not?

Reader's Digest for August 2007 contains an article entitled 'Why is the Taxman above the Law?' in its 'That's Outrageous' series. It is a well written article by Clive Coleman a barrister.
The article highlights the fact that there is no legal redress against HMRC if a taxpayer suffers as a result of Revenue errors or maladministration. This is true even if the taxpayer suffers massive financial loss resulting in bankruptcy or severe ill health or worse.
It is true that both the Adjudicator and Ombudsman may make recommendations following complaints — but that is all they are recommendations. There is no record of HMRC ever recompensing the taxpayer with a really substantial sum following a complaint. 
I believe that the highlighting of this issue is timely for two reasons. First it appears that HMRC will attempt to change existing...