HMRC's top taxman, David Hartnett to retire next year
Saturday, 10 December 2011 12:30
David Hartnett, Britain’s top tax official is set to resign from his post after a string of high profile tax deals with large organisations including Vodafone and Goldman Sachs that have resulted in criticism of his actions and decisions.
HMRC confirmed that Mr Hartnett will leave his job next summer. In the months leading up to his exit, Mr Hartnett will work with his successor Lin Homer.
Mr Hartnett presided over a decision that resulted in Goldman Sachs being let off of a tax bill of £10 million. He has also been criticised over a deal he agreed with Vodafone that saw the actual amount of tax paid substantially lower than the revenue’s earlier prediction of what it expected to collect.
Leaked documents suggested that the UK tax authorities expected to collect £6 billion from Vodafone but in the end paid just £1.25 billion to settle an investigation into the takeover of rival German telecoms firm Mannesmann.
Appearing before a Public Administration Committee in November, Mr Hartnett was accused of being ‘cavalier’ with taxpayers’ money.
Mr Hartnett has also presided over some other errors from the Inland Revenue. In 2010 1.4 million employees were sent incorrect tax codes that left individuals with incorrect tax demands averaging £1,400 each.
Staff morale has improved at HMRC, according to the latest staff survey, but is still at low levels. Just 13 per cent of staff felt that when changes are made, they are made for the better and just 17 per cent of staff have confidence in senior management.
UK Uncut, a pressure group that has launched a legal action against HMRC said that it hoped Mr Hartnett’s exit from the Inland Revenue would bring a new way of working for the UK tax authorities.
HMRC has missed its third deadline to answer questions from UK Uncut about overturning the so-called “sweetheart” deal made with Goldman Sachs last year.
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