MPs attack HMRC's 'preferential' treatment of big businesses

Tuesday, 20 December 2011 11:52

A group of MPs has spoken out against what it claims is preferential treatment of big businesses by HM Revenue & Customs (HMRC).

The Public Accounts Committee claimed large firms are getting better deals than smaller ones at the expense of the taxpayer and suggested HMRC is not accountable enough for such 'cosy' goings-on.

It accused the organisation of leaving £25 billion of tax issues with big businesses outstanding and singled out permanent secretary for tax Dave Hartnett for not handling negotiations properly.

For example, the MPs claim Mr Hartnett has let Goldman Sachs off paying millions of pounds in interest, breached internal rules by authorising a deal he had been involved in and given "imprecise, inconsistent and potentially misleading answers" when questioned about it.

Chair of the Public Accounts Committee Margaret Hodge MP told the BBC HMRC is hiding "behind a veil of secrecy".

"It's imperative everyone is treated equally in front of the law," she remarked.

HMRC criticised the group and insisted Mr Hartnett has done nothing wrong.

"The report is based on partial information, inaccurate opinion and some misunderstanding of facts. The idea Dave Hartnett cuts a large tax bill in return for a glass of wine and a cheese sandwich is just plain nonsense," a spokesperson said.

Last month, HMRC lawyer Anthony Inglese had to swear an oath before being questioned in parliament over alleged tax deals negotiated with Goldman Sachs and Vodafone.

The inquiry revolves around so-called sweetheart deals reportedly made with the firms without consulting a lawyer, which could have resulted in them having charges waived at the expense of the public.

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