Tory MP: HMRC chief should resign over Goldman Sachs case


by Sunny Hundal    
October 12, 2011 at 4:20 pm

A Tory MP has strongly implied that the HMRC’s permanent secretary Dave Hartnett has lied and says he should resign.

Jesse Norman MP wrote on his blog today:

In a Treasury Committee hearing on the 12th September, I cross-examined Mr Hartnett on his handling of the Goldman Sachs case. In response:

1. He strongly implied that he was not involved in the Goldman Sachs case.

2. He said, in terms, that he was not permitted, and had received legal advice to that effect, to discuss this or similar matters with me or other MPs.

But the Guardian’s story yesterday on Goldman Sachs puts that testimony under serious doubt, he says.

The Guardian reported that HMRC charged Goldman Sachs £10 million less than it owed, and that Dave Hartnett personally shook hands on the deal.

The story reported that there was ‘extreme unhappiness’ about his doing so from senior colleagues.

Norman adds:

In earlier testimony, Dave Hartnett told me that the Revenue never charged less than the tax owing–the Goldman Sachs shows this to be false. He also said that he could not recall seeing an example of tax evasion by a very big business. But who needs to evade tax when the Permanent Secretary is available to do private deals?

Indeed. (hat-tip @LouMcCudden)

It’s good that Tory MPs are now taking seriously the dysfunction at HMRC on tax evasion. Jesse Norman is a Conservative member of the Treasury Select Committee

Dave Harnett also earlier faced criticism for allowing companies such as Vodafone to avoid paying back billions in owed taxes.


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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


He’s going to go, the question now is how soon.

I hope he lasts long enough to be held to account by the Select Committees he lied to.

2. Primeval Mudd

“Dave Hartnett told me that the Revenue never charged less than the tax owing–the Goldman Sachs shows this to be false.”

The Guardian article said the £10million was interest, not tax. Personally I think it should be collected (I doubt many small businesses get away with interest charges being waived) but Goldman Sachs doesn’t prove Dave Hartnett’s assertion wrong.

It would be a good idea to remember the big pcture:vGoldman Sachs is an American company, and that the vast majority of its senior employees (certainly those eligible for the type of offshore compensation arrangements set up by Goldman Sachs) are US citizens or other non-UK nationals.

Goldman Sachs, its shareholders, partners and employees are doing the UK the favor of having a substantial presence in London, creating a large number of support or administrative jobs for locals. The company’s senior employees were educated (mostly in the US) at no expense to the UK taxpayer, put their kids in (mostly American) private schools, rent homes from British landlords, fly home for healthcare and would not even drop dead in a NHS ER, and only cause public disorder through an occasional parking ticket. They bring to the UK skills that the locals don’t have, and have no hope of ever acquiring in this life or next.

The idea that the UK tax authorities should try to maintain anything other than “friendly” relationships with Goldman Sachs, and other similar US institutions, is simply contrary to the best interests of the UK.

4. Leon Wolfson

@3 – What a load of corporatist bunk. If they cannot conform to UK law, they should not operate in this country. HRMC need an infusion of spine from the IRS.

5. James from Durham

Edouard

How far do you want to go? Maybe rich people should be allowed to break speed limits with impunity. Maybe if someone is knocked over by a wealthy motorist he should be allowed to get away with it to keep his favour. Are you a grovelling toady or what?

Edouard claerly is one of those who beleive that the rich should be above the law. His views are surely repugnant to anyone who believes in the rule of law.

6. Churm Rincewind

The only problem with all of this is that it seems likely that the Guardian was wrong in its assessment – or, more politely, that the story they published was “incomplete” and fundamentally flawed”.

The estimable Tim Worstall examines the issues here:

http://www.forbes.com/sites/timworstall/2011/10/13/goldman-sachs-private-eye-and-tax-dodging/


Reactions: Twitter, blogs
  1. HMRC chief now accused of ‘lying’ by Labour | Liberal Conspiracy

    [...] 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 his resignation. [...]

  2. Lee Hyde

    Tory MP: HMRC chief should resign over Goldman Sachs case | Liberal Conspiracy http://t.co/P4LUOG0D

  3. Gael

    Tory MP: HMRC chief should resign over Goldman Sachs case | Liberal Conspiracy http://t.co/P4LUOG0D

  4. Nemesis Republic

    RT @RichardJMurphy: Tory MP: HMRC chief should resign over Goldman Sachs case | Liberal Conspiracy http://t.co/dP1tmltg #UKuncut

  5. Jonathon Blakeley

    Tory MP: HMRC chief should resign over Goldman Sachs case | Liberal Conspiracy http://t.co/P4LUOG0D

  6. Sam hussain

    RT @RichardJMurphy: Tory MP: HMRC chief should resign over Goldman Sachs case | Liberal Conspiracy http://t.co/dP1tmltg #UKuncut

  7. Jonathon Blakeley

    Tory MP: HMRC chief should resign over Goldman Sachs case | Liberal Conspiracy http://t.co/ya5hJub5 via @libcon

  8. screamin'kid

    RT @RichardJMurphy: Tory MP: HMRC chief should resign over Goldman Sachs case | Liberal Conspiracy http://t.co/dP1tmltg #UKuncut

  9. tim macgregor

    Big: Tory MP @Jesse_norman says HMRC chief lied and should resign over Goldman Sachs case http://t.co/nimOOgIl

  10. Jonathan Webber

    Big: Tory MP @Jesse_norman says HMRC chief lied and should resign over Goldman Sachs case http://t.co/nimOOgIl

  11. Harry Dump-Rich

    RT @RichardJMurphy: Tory MP: HMRC chief should resign over Goldman Sachs case | Liberal Conspiracy http://t.co/8h1IChMl

  12. James Doran

    Big: Tory MP @Jesse_norman says HMRC chief lied and should resign over Goldman Sachs case http://t.co/nimOOgIl

  13. DeludedDonny

    Big: Tory MP @Jesse_norman says HMRC chief lied and should resign over Goldman Sachs case http://t.co/nimOOgIl

  14. Ian Martin

    Big: Tory MP @Jesse_norman says HMRC chief lied and should resign over Goldman Sachs case http://t.co/nimOOgIl

  15. Cecilia Mills

    Tory MP: HMRC chief should resign over Goldman Sachs case … http://t.co/Nge3fBmh$





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