Published: October 12th 2011 - at 8:06 pmHMRC chief now accused of ‘lying’ by Labour
The head of the HMRC was accused of lying by Labour MP Margaret Hodge in an explosive exchange today afternoon in the Houses of Parliament.
The HMRC’s David Hartnett faced the Public Accounts Committee, which started off with Hodge asking him if he admitted to lying about dealing with Goldman Sachs’ tax affairs.
She also said taxpayers had been “ripped off” by £10m from Goldman Sachs thanks to the HMRC.
The Guardian revealed yesterday that the HMRC had let Goldman Sachs off £10m in interest payments. That prompted Conservative MP Jesse Norman, head of the Treasury Select Committee, to call for Hartnett’s resignation.
In a heated exchange, Hodge accused Hartnett’s replies of being “laughable” and another MP said the whole episode sounded “extremely odd”.
Hodge started off by asking: “It seems to me you lied when you told the Treasury Select Committee on 12th September when you said that ‘I do not deal with Goldman Sachs’ tax affairs’..”
Hartnett denied lying in response and said he stood by his claim that he did not have “deep knowledge of Goldman Sachs’ tax affairs”. He adds: “I have never worked in a normal way…to deal with their tax affairs.”
Hodge responds: “One or the other is a lie,” referring to an earlier testimony where Harnett admits to working with the team of HMRC lawyers to deal with Goldman Sachs.
Hodge asks him again: “Did you do a deal with Goldman Sachs?”
Hartnett replies: “We reached a settlement with Goldman Sachs…”
Hodge cuts him off: “.. On which you shook hands? If you reached a settlement, why did you say at the Treasury Select committee to Jesse Norman… ‘I do not deal with Goldman Sachs affairs’?”
Hartnett replies: “Because what I meant by that is that I do not deal, as my coleagues deal, on a regular basis with Goldman Sachs’ affairs…”
Hodge is clearly exasperated: “This is a BIG bit of Goldman Sachs’ tax affairs for heaven’s sakes. This is a dispute in which you personally negotiated the settlement and told the Treasury Select Committee ‘I do not deal with GS tax affairs’.”
And on goes the exchange.
Then another MP interjects and asks the HMRC’s Hartnett when his meeting took place with Goldman Sachs and if there was a note of that meeting with Goldman Sachs.
Hartnett responds by saying he can’t be sure when the meeting took place and doesn’t remember if anyone took notes of the meeting. He then adds that someone must have taken notes but he hadn’t seen them.
Margaret Hodge interjects by saying that the HMRC’s own officials had said “you [Hartnett] shook hands and your name is all over the [Goldman Sachs] settlement.”
An MP next to Margaret Hodge says: “The whole thing sounds extremely odd Mr Hartnett.”
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Sunny Hundal is editor of LC. Also: on Twitter, at Pickled Politics and Guardian CIF.
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Reader comments
Latest issue of Private Eye devotes most of Page 29 to Hartnett’s affairs.
On sale at all good newsagents right now, price just £1.50!
This guy should have gone after he let Vodafone off of £6 Billion quid.Rest assured when he does get kicked out there will no doubt be a lucrative appointment waiting for him.
He’s doing what the government want him to do. They put him there to help get some big companies off their tax liabilities with face saving deals.
The sad thing is it is actually quite sensible for government to negotiate to some extent. Where a liability has been contested, if a company agrees to stump up rather than go through courts – letting them of associated fines and interest is perfectly normal and saves a lot of cost.
In his case he has oddly gone through the cost of full legal challenge – and then still let them off despite the findings coming down HMRC’s way.
It is utterly outrageous that HMRC has been bought up by such companies – and those companies who do pay their taxes should be the ones shouting loudest about this state susbsidy system.
A self employed builder friend who has for many years used the services of a well respected accountant to submit his tax returns was asked by a tax inspector to attend the local HMRC office for a ‘routine’ interview.
Although in his own time, he was happy to attend.
During the interview, he was asked does he use his company vehicle (a typically shabby 14 year old 1 tonne pick up truck) solely for company business.
He replied that he did apart from the odd trip, taking, say a broken washing machine to the local faciltity about 2 miles away.
In which case, said the inspector, you should have declared it, as the taxpayer should not be subsidising the private use of your vehicle.
My friend replied that when visiting potential clients he would go in his own car since his works vehicle was rather shabby and he did not claim for those journeys.
The inspector told him it was his choice to take his own vehicle and that any further use of his company vehicle for private business should be declared.
I know my friend has enjoyed reading about the cosy relationship between Goldman Sachs and David Hartnett and it has filled him with a new found respect for the equitable way in which HMRC treats the taxpayer.
I am sure a comfortably cushioned consultancy awaits Mr Hartnett.
Reactions: Twitter, blogs
- w.m o'mara
HMRC chief now accused of 'lying' by Labour http://t.co/40suiWot
- sunny hundal
In a v heated exchange today, HMRC chief accused of "lying" by Labour's Margaret Hodge on Goldmans Sachs deal http://t.co/b9MfWsqF
- Stew Wilson
In a v heated exchange today, HMRC chief accused of "lying" by Labour's Margaret Hodge on Goldmans Sachs deal http://t.co/b9MfWsqF
- sunny hundal
Margaret Hodge says taxpayers "ripped off" by £10m from Goldman Sachs thanks to HMRC deal http://t.co/b9MfWsqF
- Paul Trembath
Margaret Hodge says taxpayers "ripped off" by £10m from Goldman Sachs thanks to HMRC deal http://t.co/b9MfWsqF
- Linda Skilbeck
"@libcon: HMRC chief Hartnett attacked by Labour for 'lying' about Goldman Sachs deal http://t.co/Y9FQkTIy #TaxationUK" /ouch!
- Tim Johnson
RT @libcon HMRC chief Hartnett attacked by Labour for 'lying' about Goldman Sachs deal http://t.co/u7VadAEv #TaxationUK
- Talal Rajab
In a v heated exchange today, HMRC chief accused of "lying" by Labour's Margaret Hodge on Goldmans Sachs deal http://t.co/b9MfWsqF
- Tom Fox
HMRC chief now accused of 'lying' by Labour http://t.co/40suiWot
- Cllr Timothy Godfrey
In a v heated exchange today, HMRC chief accused of "lying" by Labour's Margaret Hodge on Goldmans Sachs deal http://t.co/b9MfWsqF
- Zara Lockwood
HMRC chief has now been accused of lying by both Conservatives and Labour on Goldman Sachs dealings http://t.co/b9MfWsqF (from earlier)
- Jill Hayward
HMRC chief has now been accused of lying by both Conservatives and Labour on Goldman Sachs dealings http://t.co/b9MfWsqF (from earlier)
- Kevin Peters
HMRC chief now accused of ‘lying’ by Labour | Liberal Conspiracy http://t.co/RFuTEZHU via @libcon >> Hodge vs HMRC chief.
- Liza Harding
HMRC chief has now been accused of lying by both Conservatives and Labour on Goldman Sachs dealings http://t.co/b9MfWsqF (from earlier)
- Paul Trembath
HMRC chief has now been accused of lying by both Conservatives and Labour on Goldman Sachs dealings http://t.co/b9MfWsqF (from earlier)
- Paul Abbott
HMRC chief has now been accused of lying by both Conservatives and Labour on Goldman Sachs dealings http://t.co/b9MfWsqF (from earlier)
- mr_ceebs
HMRC chief has now been accused of lying by both Conservatives and Labour on Goldman Sachs dealings http://t.co/b9MfWsqF (from earlier)
- Bannerbright
HMRC chief has now been accused of lying by both Conservatives and Labour on Goldman Sachs dealings http://t.co/b9MfWsqF (from earlier)
- michael fourman
HMRC chief has now been accused of lying by both Conservatives and Labour on Goldman Sachs dealings http://t.co/b9MfWsqF (from earlier)
- Mags W
RT @sunny_hundal: HMRC chief has now been accused of lying by both Conservatives and Labour on Goldman Sachs dealings http://t.co/kHDR7wI3
- Mags W
RT @sunny_hundal: HMRC chief has now been accused of lying by both Conservatives & Labour on Goldman Sachs dealings http://t.co/kHDR7wI3
- paulstpancras
RT @sunny_hundal: HMRC chief has now been accused of lying by both Conservatives & Labour on Goldman Sachs dealings http://t.co/kHDR7wI3
- Lucentum Ltd
RT @libcon HMRC chief Hartnett attacked by Labour for 'lying' about Goldman Sachs deal http://t.co/u7VadAEv #TaxationUK
- Marlborough Trust
HMRC chief now accused of ‘lying’ by Labour http://t.co/hEz7ASbu #HMRC
- Marlborough Trust
HMRC chief now accused of ‘lying’ by Labour http://t.co/39QRarhk
- UKuncut to sue HMRC over Goldman Sachs deal | Liberal Conspiracy
[...] As Liberal Conspiracy reported after, Harnett was accused of lying by both Tory and Labour MPs. [...]
- realsociology » Blog Archive » Sach’s keeps their money, Hartnett keeps his job – another reason to keep on protesting
[...] make matters worse, Hartnett also stands accussed of misleading parliament over this – having claimed last month that he didn’t deal with Goldman Sach’s tax [...]
- HMRC loses all credibility on Goldman Sachs & Vodafone deals | Liberal Conspiracy
[...] we first reported, Hartnett was called a liar by the Labour MP Margaret Hodge when she questioned him in front of the Public Accounts [...]
- UKuncut in major win against tax avoidance | Liberal Conspiracy
[...] HMRC was raised considerably after Conservative MP Jesse Norman and Labour’s Margaret Hodge accused Hartnett of lying in October this year over a deal with Goldman [...]
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