Plans to write off 481m in 2003/04 and a similar amount in2004/05 were confirmed last week by David Varney, chairman of Revenueand Customs, the Government department responsible for administering taxcredits.
But a Child Poverty Action Group spokesman said the action was onlybeing taken on overpayments the Government thought unrecoverable.
The charity will announce later this week whether it will be takingcourt action against the Revenue. It wants the department to giveclaimants a chance to say why an overpayment should not be recoveredbefore clawing money back.
It has also called for an amnesty on all overpayments up to April 2005,where fraud has not been proven, as part of a series of demands toreform the system sent to the Paymaster General last week.
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