It comes after a shocking report, which slams HM Revenue and Customs for being “far too cosy” with big businesses.
The report by MPs of the Commons’ Public Accounts Committee, makes claims that UK tax chief, David Hartnett met with big companies’, tax lawyers and advisors for lunch no less than 107 times in the space of two years.
At a time when small firms and hard-working individuals are squeezed for every tax dollar, “many millions” in tax have been lost because of officials’ favourable deals with wealthy banks and companies – as well as through blunders, the report indicates.
Margaret Hodge, chairwoman of the Commons’ Public Accounts Committee, said: “This report is a damning indictment of HMRC and the way its senior officials handle tax disputes with large corporations.
“We uncovered both specific and systemic failures which must be addressed.”
The report singles out the role of Hartnett, 60, in a deal with wealthy investment bank Goldman Sachs that allowed it to avoid £20 million in interest.
The committee’s report blasts Hartnett and other top HMRC officials for giving MPs “imprecise, inconsistent and potentially misleading” evidence.
The fact that whistleblowers supplied the facts to MPs further raised their ire.
Last night an HMRC spokesman branded the report as “based on partial information, inaccurate opinion and some misunderstanding of facts.”
And Treasury Minister David Gauke said: “The Government has full confidence in HMRC and its leadership.”
But campaigners UK Uncut Legal Action vowed to launch a court challenge to fight Goldman Sachs’ “dodgy tax deal”.
