Members of the UK200Group of independent accountancy and lawyer firms have today commented on the accusation that HMRC let the US investment bank Goldman Sachs, off £20 million in tax in a “sweetheart” deal to avoid “major embarrassment” for George Osborne as they threatened to pull out of the Government’s non-binding Code of Practice on Taxation for Banks.

 David Whiscombe, director of tax at UK200Group member firm Berg Kaprow Lewis

“Dontcha just love it when people’s dirty linen gets washed in public? We suspect that most large organisations of any kind have things they would much rather were kept buried in the bottom of a locked filing cabinet stuck in a disused lavatory with a sign on the door saying "Beware of The Leopard". But of course those are precisely the things which need to be exposed, especially when the large organisation is a government department and supremely so when it’s Her Majesty’s Revenue and Customs. As it is, we have an uncomfortable feeling that far too much, which we have a legitimate interest in knowing, is kept hidden from us by invoking dubious claims of “taxpayer confidentiality” and the like.

“It’s very worrying that the actions of a public servant (which should be determined solely by the public interest) should appear to be influenced by the perceived risk of causing “major embarrassment” to himself or his political masters: frankly the greater the risk of embarrassment the more we’d like to know about it. 

“Mr Cameron isn’t the only “call me Dave” who has some explaining to do. The difference is that Mr Cameron was democratically elected and is answerable to the electorate. But Mr Hartnett?”

David Ingall, Past President UK200 Group

“It is strange how the minutiae of government can make the headlines in this way. As in the Jimmy Carr case, this is the media trying to tax by acclamation through the case being brought by UK Uncut Legal Action. But who are these people? From a very quick visit to their website it appears they are "activists" intent on embarrassing "big business" (and the government along the way). Cause embarrassment they undoubtedly have and revealed a fault in the management of HMRC.

 

“The bits about embarrassment for the Chancellor are the political objective and make bold headlines but the real issue was that the permanent secretary was involved in direct negotiations when he should have left these matters to his technical staff. It sounds like David Hartnett is using the political aspect to excuse his own weak negotiating powers.”

 

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Established in 1986, UK200Group is the leading mutual professional association in the UK with some 150 offices of quality-assured member accountancy and lawyer firms throughout the UK totalling over 550 partners, 150,000 business clients and global links in over 50 countries. UK200Group provide services and products that are designed to enhance the business performance of its members.  Telephone 01252 401050, email admin@uk200group.co.uk or visit www.uk200group.co.uk 

 

Disclaimer:

UK200Group is an association of separate and independently owned and managed accountancy firms and lawyer firms. UK200Group does not provide client services and it does not accept responsibility or liability for the acts or omissions of its members.  Likewise, the members of UK200Group are separate and independent legal entities, and as such each has no responsibility or liability for the acts or omissions of other members.

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