§ Mr. ByersTo ask the Chancellor of the Exchequer on what date EDS reached the maximum limit on its earned profit from its contract with Inland Revenue; if excess profits are now being paid back to the Inland Revenue; and if he will make a statement. [25884]
§ Mr. Jack[holding answer 19 April 1996]: The Inland Revenue contract with EDS includes an annual profit-sharing mechanism. At the end of its financial year, 11W EDS provides the department with a statement showing the revenue received from the contract and the costs as included in the company's audited accounts. Where the profit exceeds a percentage target level, calculated in accordance with the contract formula, this is shared between the department and EDS equally.