Is your computer about to be targeted?

SARAH DEEKS considers the practice management implications of the Data Protection Act for tax practitioners.

THE REMODELLED DATA Protection Act (DPA) has been in force for over five years. Having given time for the legislation to bed-down the Information Commissioner's Office (ICO) has recently examined notification rates amongst various business sectors particularly those in a position to influence others or holding sensitive data. Solicitors have already been targeted and a number of firms prosecuted. The ICO now has its sights set on accountancy and tax firms where it appears that around half of all practices may not have notified that they are processing personal information about their clients. But do all tax professionals need to notify?

The data controller

For tax practices holding personal data about their clients on a database (usually as part of their tax return compliance software) matters seem straightforward. The firm is a...