HMRC let Goldman Sachs off £10m bill

BRITAIN's tax authority has denied giving investment bank Goldman Sachs a "sweetheart" deal, despite evidence that one of its permanent secretaries personally shook hands on an agreement that allowed the bank to avoid paying the government £10m.

Leaked documents show that Dave Hartnett, permanent secretary of HM Revenue and Customs, met with Goldman's tax director, Mike Housden, in November 2010 following years of legal wrangling over a £30.81m bill that the bank was refusing to pay.

As a result of the meeting, "a late submission had come in about a deal on which Dave Hartnett had 'shaken hands' with Goldman Sachs". The deal allowed Goldman to avoid paying £10m interest which had accrued during the five-year long court battle over the bill.

Hartnett has refused to answer questions on the deal in front of a parliamentary committee on the grounds that it would be illegal, despite having received advice to the contrary.

HMRC have put the incident down to a "technical mistake" by an unidentified official junior to Hartnett.

Read a full report at The Guardian. ·