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HMRC wins Goldman Sachs court case | HMRC wins Goldman Sachs court case |
(about 2 hours later) | |
HM Revenue and Customs (HMRC) has won its case in the High Court, where it had been accused of illegally letting investment bank Goldman Sachs off part of its tax bill. | HM Revenue and Customs (HMRC) has won its case in the High Court, where it had been accused of illegally letting investment bank Goldman Sachs off part of its tax bill. |
The campaign group UK Uncut Legal Action had claimed that the taxpayer had been cheated of up to £20m. | The campaign group UK Uncut Legal Action had claimed that the taxpayer had been cheated of up to £20m. |
It said HMRC had let Goldman Sachs off the hook through a "sweetheart deal". | It said HMRC had let Goldman Sachs off the hook through a "sweetheart deal". |
The judge ruled the deal was "not a glorious episode in the history of the Revenue", but said it was not unlawful. | The judge ruled the deal was "not a glorious episode in the history of the Revenue", but said it was not unlawful. |
HMRC said it had changed its practices since it made the agreement with Goldman Sachs in 2010. | HMRC said it had changed its practices since it made the agreement with Goldman Sachs in 2010. |
It also said that the maximum that had been lost to taxpayers was £8m. | It also said that the maximum that had been lost to taxpayers was £8m. |
HMRC welcomed today's judgement. | |
"The High Court's comprehensive dismissal of UK Uncut's claim puts to rest the fallacy that HMRC is soft on large businesses," said Jim Harra, HMRC's director general for business tax. | |
"The High Court's judgement confirms what HMRC has always said: that while we made errors in settling the Goldman Sachs dispute, we made the right settlement in the circumstances, and that our decision was both proper and lawful," he added. | |
HMRC said that in the last seven years, it had recovered £34bn in additional revenues from large businesses. | |
"Reasonable" deal | "Reasonable" deal |
But the group behind the legal action said it was important that the country knew more about so-called "bespoke settlements", where the tax authorities make private deals with big companies. | But the group behind the legal action said it was important that the country knew more about so-called "bespoke settlements", where the tax authorities make private deals with big companies. |
"We are disappointed we've lost the case," said Anna Walker of UK Uncut Legal Action. | "We are disappointed we've lost the case," said Anna Walker of UK Uncut Legal Action. |
"But it has exposed the truth behind these backroom deals," she told the BBC. | "But it has exposed the truth behind these backroom deals," she told the BBC. |
"The government talks tough on tax, but does not do much," she added. | "The government talks tough on tax, but does not do much," she added. |
The deal between Goldman Sachs and HMRC, in which the bank was excused interest payments on National Insurance contributions, was declared "reasonable" in a report by the National Audit Office. | The deal between Goldman Sachs and HMRC, in which the bank was excused interest payments on National Insurance contributions, was declared "reasonable" in a report by the National Audit Office. |