View from the Chair: Our new research paper

Dame Margaret Hodge MP, Chair of the APPG on Anti-Corruption & Responsible Tax writes:

Today we are releasing a research paper that makes radical recommendations for restoring public trust in HMRC. For too long the tax authority has operated without adequate scrutiny or appropriate transparency. I saw this first hand when I was chair of the Public Accounts Committee and leaks emerged which demonstrated that HMRC engaged in billions of pounds worth of sweetheart deals with large corporations, including Goldman Sachs.

Yet when questioned, HMRC officials hide behind the doctrine of taxpayer confidentiality to stop details of these deals from reaching the public domain. This secrecy inevitably begs the question of whether or not taxpayers are getting a fair deal from these exorbitant tax agreements which let corporations off the hook for tax that they owe. Most individuals and smaller companies pay their taxes without question and on time, so why should the biggest companies get a free ride at the taxpayer’s expense?

It is time to lift the lid on these sweetheart deals with the biggest companies which are effectively fleecing taxpayers. Our proposals include, for the first time, public scrutiny of the tax affairs of the largest multinationals through a new parliamentary committee that would assess in an open and transparent manner how HMRC deals with tax disputes. Our new committee would help to crackdown on unfair sweetheart deals and would encourage big companies – including the infamous Big Tech tax avoiders, like Amazon – to pay a fair share.

A supplementary proposal would strengthen operational independence at HMRC and ensure that it prioritises raising tax revenue. By limiting opportunities for the Treasury to set behind-closed-door goals or directives for the tax authority, we also hope to further strengthen safeguards against any corrupt meddling by government ministers in the tax affairs of corporations. These are both sensible and proportionate recommendations that would enhance accountability at HMRC.