We don't cut 'cosy' deals with big business, say taxmen

BRITAIN'S TAX collectors remained defiant today in the face of a damning a report by a committee of MPs which accuses them of cutting "cosy" deals with large companies, letting them off payments – and of being "less than clear" when called to account.

A spokesman for HMRC said the Public Accounts Committee's findings were "without foundation" and claimed that the MPs had got their facts wrong, relying on "untested, leaked information".

He defended the Revenue's dealings with large companies, reports The Times, saying: "Large business tax settlements are a vital part of how HMRC secures tax revenues and without them Britain's public finances would be seriously damaged."

The report calls HMRC boss Dave Hartnett's integrity into question, saying that appearing before MPs he gave a "less than clear" account of himself and suggesting that, among other senior figures at the Revenue, the scale of hospitality he accepts could lead to a "perception of conflict of interests".

The spokesman rejected this, telling the BBC: "The idea Dave Hartnett cuts a large tax bill in return for a glass of wine and a cheese sandwich is just plain nonsense... If he was interested in feathering his nest he would have accepted one of the many highly lucrative offers of work he regularly receives from the private sector."

The spokesman also claimed that Hartnett – who has announced he will retire next year - had answered the committee's questions in line with legal advice and had not stonewalled MPs.

The committee claims the Revenue failed to collect some £25.5bn owed by firms including Goldman Sachs and Vodafone. HMRC disputed this claim, saying the £25.5bn was a maximum estimate of potential liabilities and not a confirmed figure.

But committee chair Margaret Hodge MP said: "This report is a damning indictment of HMRC … Having looked at the two cases in the public domain, we are concerned that many millions of pounds may be lost to the public purse." ·