Published: March 27th 2011 - at 9:35 pm

HMRC boss dined by Vodafone over tax deal


by Newswire    

Britain’s top tax official accepted hospitality from a mobile phone company’s financial advisers only weeks before a deal which allowed the firm to avoid up to £6 billion of tax liabilities.

Dave Hartnett attended a supper at the headquarters of accountancy firm Deloitte while negotiations were still ongoing over the amount of tax its client Vodafone would have to pay.

Three months later, in what has been described as an ‘unbelievable cave-in’, Mr Hartnett agreed Vodafone was not liable for vast amounts of tax on profits racked up by a subsidiary based in a tax haven.

The dinner was one of four meetings between the accountancy firm and Mr Hartnett which have come to light following a request under the Freedom of Information Act. Two of them took place shortly before the deal was agreed and the other two in the months afterwards.

Last night Deloitte refused to reveal the content of the discussions. A spokesman said: ‘We have frequent meetings with all of our regulators and Dave Hartnett is no exception to this.’

…more at the Daily Mail (non-ads link)


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Reader comments


1. Cherub

Friends at HMRC are amazed that Hartnett is still there. He is considered a liability. How long until he moves to a nice job with Vodafone?

I understand from Private Eye that his love for Vodafone is so great that he has lobbied other governments such as India to encourage them to give Vodafone tax breaks.

2. Tim J

I’m surprised that you’re surprised that the head of HMRC is in regular contact with the big four accountancy firms. I’m less surprised, sadly, that the headline to this piece is untrue because that’s par for the course for sidebar pieces.

Oh, and “attended a supper”? Supper is for less exalted personages; Deloittes will have hosted a dinner.

3. YMT

What do you want? That companies be banned from developing corporate relationships, I look forward to getting my Liberal Conspiracy approved card through the door dictating who and who I can’t talk to any more.

4. Schmidt

When Dave turns out for saveloy and chips with anyone who invites him, fair enough. The days of Trade Unionists enjoying beer and sandwiches at number 10 were moaned about non-stop by right wingers but when its foie gras and the finest wines known to humanity with the people whose clients its Dave’s job to extract money from its a different matter. If any organisation or lobbyist wants a meeting with a civil servant or minister it should be in office hours and minuted.

And why is Dodgy Dave allowed to lobby India’s revenue on behalf of Vodafone over tax it owes in India?

5. Watchman

For this to be a problem, it has to be shown that Mr Harnett was directly involved in the Vodafone case, which is unlikely – I doubt HMRC are so casual.

6. Cherub

@5 Watchman

I understand he was directly involved. He also cancelled the HMRC investigation into Lord Rothermere’s questionable tax status.

Basically he’s a dirty little fucker.

7. Watchman

Cherub,

Have we got substantiating evidence for this, because there is clear conflict of interest there, of the sort that should be more publicised (because government appartchiks working together with big business is not good for anyone on left or right).

8. Luis Enrique

I guess there are legitimate questions about where HMRC employees should meet tax accountants and their clients, and about what hospitality they should accept.

still, if you start from the presumption Hartnett is honest, a plate of baked sea bass is hardly likely to corrupt him, and if you start from the presumption Hartnett is bent, it’s not likely to swing much either. Brown envelopes stuffed with cash don’t have to be handed over over dinner, and neither do promises of lucrative post-HRMC employment.

9. Tim J

I guess there are legitimate questions about where HMRC employees should meet tax accountants and their clients, and about what hospitality they should accept.

Are there though? HMRC and tax accountants are in effect doing the same job – determining what the legal tax obligations of companies are. I know that when I worked briefly in the tax department of a law firm I spent an inordinate amount of time on the phone to HMRC checking as to HMRC’s attitude towards tax planning, informing them about transactions and so on.

It’s not a question of them being two armies drawn up in opposition to each other. There’s also a fair amount of secondments between accountancy firms and HMRC. This is precisely the same thing as the head of the FSA meeting with banks – just part of what you would expect from a regulatory system.

10. Richard W

I think you have to start from a presumption that public officials are honest unless there is clear evidence to the contrary. Conflicts of interest could arise but one can’t just assume that means a tax official will fail to do their job properly. At any one time there will be multiple live HMRC cases and it is almost certain that a big accountancy firm will have a client under investigation. So a tax official attending a hospitality event by a big accountancy firm will be conflicted only if you want to see them conflicted.

11. Cherub

@7 Watchman

The original allegation was in Private Eye, not online. There are lots of secondary sources such as http://tabloid-watch.blogspot.com/2009/03/why-silence.html .

If it’s untrue then Hartnett has made no effort to dispel the rumour.

12. Luis Enrique

Tim J

well, to be silly, I’d advise against holding meetings on the client’s yacht somewhere in the Caribbean, if only to avoid uncomfortable headlines.

I know HMRC needs to understand how tax accountants work, which means either recruiting from them or sending people to work alongside them. But there are obvious concerns about the “revolving doors” between regulator and regulated – I think we need HMRC to be able to treat tax accountants as the opposing army, on occasion. We don’t want too much empathy between tax collect and tax avoiders.

13. pagar

@ Cherub

Basically he’s a dirty little fucker.

My view of anyone who works for HMRC………

14. ukliberty

If it’s untrue then Hartnett has made no effort to dispel the rumour.

If it is true then Hartnett got a crap deal didn’t he? With this story complaining about a dinner and another story about the money his trip to India cost us and sundry other complaints, I mean.

15. Mr Grunt

It makes you wonder whether this was a Dodgy Deal that is so clever no person will have to answer too but if they do, there will be some clever loop hole or legal escape.

You can put your money on it plus your tax if you are workin g class.

16. Schmidt

Dodgy Dave’s appearance before the treasury select committee is examined in the latest Private Eye. Corrupt or simply incompetent?

17. Mr Grunt

Schmidt at No : 16

People like David Cameron are too clever to be incompetent regarding these matters. If the Tories get their way with breaking up and privatising The National Health Service just watch carefully what people, companies and organisation end up making a fortune out of it.

Then you will have a clear view of how it all works with who knows who.

18. aaa

Watch More Than 50+ Most Popular Indian T.v Serials Daily Episode In H.d Quality Video With Good Sound To Watch Please Visit at: http://www.desiindianserial.blogspot.com

19. Bill S

So what is being inferred in this article? Presumably there is no suggestion that HMRC in general and Dave Hartnett in particular were open to bribery. Of course it is safe reporting as clearly DH would be barred from disclsing the contents of the discussions as well.

I would imagine that the dinner might be more than a sandwich and glass and I would also imagine that DH will have fully recorded his attendance in the “entertainments register”.

20. sally

That is the great thing about the corporate state. You get to buy what ever you want. You want justice? How much can you pay?


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    RT @libcon: HMRC boss dined by Vodafone weeks before £6bn tax avoidance deal http://bit.ly/flJ2zK

  119. Mel from Leeds

    RT @Frances_Coppola: RT @libcon: HMRC boss dined by Vodafone weeks before £6bn tax avoidance deal http://bit.ly/flJ2zK

  120. WestMonster

    RT @sunny_hundal: The boss of HMRC was dined by Vodafone accountants just weeks before its £6bn tax avoidance deal http://bit.ly/flJ2zK

  121. Sunny Daheley

    RT @sunny_hundal: The boss of HMRC was dined by Vodafone accountants just weeks before its £6bn tax avoidance deal http://bit.ly/flJ2zK

  122. Alison

    RT @JaneDaisyPain: “@libcon: HMRC boss dined by Vodafone weeks before £6bn tax avoidance deal http://t.co/Kp9x0IC” !!!!!

  123. ross ofcourse

    RT @sunny_hundal: The boss of HMRC was dined by Vodafone accountants just weeks before its £6bn tax avoidance deal http://bit.ly/flJ2zK

  124. UnisonBhamUni

    RT @latentexistence: #ukuncut RT @libcon: HMRC boss dined by Vodafone weeks before £6bn tax avoidance deal http://bit.ly/flJ2zK

  125. Brian Bailey

    RT @sunny_hundal: The boss of HMRC was dined by Vodafone accountants just weeks before its £6bn tax avoidance deal http://bit.ly/flJ2zK

  126. Brian Bailey

    RT @sunny_hundal: The boss of HMRC was dined by Vodafone accountants just weeks before its £6bn tax avoidance deal http://bit.ly/flJ2zK

  127. Adrian Gillette

    RT @JaneDaisyPain: “@libcon: HMRC boss dined by Vodafone weeks before £6bn tax avoidance deal http://t.co/Kp9x0IC” !!!!!

  128. Tara B

    RT @sunny_hundal: The boss of HMRC was dined by Vodafone accountants just weeks before its £6bn tax avoidance deal http://bit.ly/flJ2zK

  129. Miles Weaver

    RT @JaneDaisyPain: “@libcon: HMRC boss dined by Vodafone weeks before £6bn tax avoidance deal http://t.co/Kp9x0IC” !!!!!

  130. Andy Birchwood

    RT @sunny_hundal: The boss of HMRC was dined by Vodafone accountants just weeks before its £6bn tax avoidance deal http://bit.ly/flJ2zK

  131. Susan White

    RT @JaneDaisyPain: “@libcon: HMRC boss dined by Vodafone weeks before £6bn tax avoidance deal http://t.co/Kp9x0IC” !!!!!

  132. Tonsko

    RT @JaneDaisyPain: “@libcon: HMRC boss dined by Vodafone weeks before £6bn tax avoidance deal http://t.co/Kp9x0IC” !!!!! <pah. Typical.

  133. Double.Karma

    RT @libcon: HMRC boss dined by Vodafone weeks before £6bn tax avoidance deal http://bit.ly/flJ2zK

  134. Oliver Mochizuki

    RT @JaneDaisyPain: “@libcon: HMRC boss dined by Vodafone weeks before £6bn tax avoidance deal http://t.co/Kp9x0IC” !!!!!

  135. Nicola Chan

    RT @sunny_hundal: The boss of HMRC was dined by Vodafone accountants just weeks before its £6bn tax avoidance deal http://bit.ly/flJ2zK

  136. Nicola Chan

    RT @sunny_hundal: The boss of HMRC was dined by Vodafone accountants just weeks before its £6bn tax avoidance deal http://bit.ly/flJ2zK

  137. Lesley

    HMRC boss dined by Vodafone accountants Deloitte weeks before £6bn tax avoidance deal http://is.gd/FCmOHC & http://is.gd/XXI6mT #UKuncut

  138. Stephen Neale

    HMRC boss dined by Vodafone over tax deal http://xrl.in/8mol #26March #march26 #ukuncut

  139. Craig Shaw

    RT @tom_watson RT @JaneDaisyPain: “@libcon: HMRC boss dined by Vodafone weeks before £6bn tax avoidance deal http://t.co/Kp9x0IC”

  140. Top Politics Tweets

    RT @sunny_hundal: The boss of HMRC was dined by Vodafone accountants just weeks before its £6bn tax avoidance deal http://bit.ly/flJ2zK

  141. Rad

    RT @JaneDaisyPain: “@libcon: HMRC boss dined by Vodafone weeks before £6bn tax avoidance deal http://t.co/Kp9x0IC” !!!!!

  142. Plymouth City UNISON

    RT @stephenJneale: HMRC boss dined by Vodafone over tax deal http://xrl.in/8mol #26March #march26 #ukuncut

  143. Diane Hain

    RT @stephenJneale: HMRC boss dined by Vodafone over tax deal http://xrl.in/8mol #26March #march26 #ukuncut

  144. Mike Saunt

    RT @JaneDaisyPain: “@libcon: HMRC boss dined by Vodafone weeks before £6bn tax avoidance deal http://t.co/Kp9x0IC” !!!!!

  145. Tami Peterson

    RT @stephenJneale: HMRC boss dined by Vodafone over tax deal http://xrl.in/8mol #26March #march26 #ukuncut

  146. dundee uncut

    RT @libcon: HMRC boss dined by Vodafone weeks before £6bn tax avoidance deal http://bit.ly/flJ2zK

  147. Ferret Dave

    RT @libcon: HMRC boss dined by Vodafone weeks before £6bn tax avoidance deal http://bit.ly/flJ2zK

  148. Pen

    RT @libcon: HMRC boss dined by Vodafone weeks before £6bn tax avoidance deal http://bit.ly/flJ2zK

  149. Robin Green

    RT @tamsinchan: #HMRC boss was dined by #Vodafone accountants just weeks before its £6bn tax avoidance deal http://bit.ly/flJ2zK via @su …

  150. Rob74NL

    RT @sunny_hundal: The boss of HMRC was dined by Vodafone accountants just weeks before its £6bn tax avoidance deal http://bit.ly/flJ2zK

  151. Rikki Prince

    RT @JaneDaisyPain: “@libcon: HMRC boss dined by Vodafone weeks before £6bn tax avoidance deal http://t.co/Kp9x0IC” !!!!!

  152. Marcus

    RT @libcon: HMRC boss dined by Vodafone weeks before £6bn tax avoidance deal http://bit.ly/flJ2zK

  153. marmite

    HMRC boss dined by Vodafone weeks before £6bn tax avoidance deal http://bit.ly/flJ2zK via @libcon #UKuncut #Demo2011 #March26 #Corruption

  154. Simon Hayward

    RT @marmite_: HMRC boss dined by Vodafone weeks before £6bn tax avoidance deal http://bit.ly/flJ2zK via @libcon #UKuncut #Demo2011 #Marc …





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