Denials, Contradictions: Goldman Sachs Says It Owes No Taxes

(Posted on 23/12/11)

Even as UK Uncut has put the wheels in motion for legal proceedings against Goldman Sachs, the banking conglomerate still insists it owes no more taxes.

You may remember that UK Uncut is a United Kingdom-based protest group That formed just more than a year ago as a way to protest against those avoiding UK taxes. It also brings to the forefront cuts to various public services.

The pressure group has now filed a request for a legal review regarding the ruling that allowed Goldman Sachs to bypass interest payments on its tax bill. The HM Revenue & Customs ruled that it wouldn't have to pay the interest. Since then, HMRC has told MPs that it was an error and it's believed this error, according to the National Audit Office, amounts to something between £5m to £8m.

At least one previous employee for HMRC, who's now a whistleblower, puts the cost closer to £20m. HMRC insists that's not accurate, however. Meanwhile, UK Uncut has called for the government to finally begin proceedings that would force large corporations and the "super rich" to pay their due taxes rather than pursue its "unnecessary austerity programme".

The solicitors in the UK involved with this is Leigh Day & Co and they've agreed to take on the case under a
"no win, no fee" dynamic. In its presser earlier this week, human rights solicitor Richard Stein, said, "We wrote to the HMRC in October asking them to quash the deal and reclaim the millions unpaid in taxes from one of the world's richest banks, but received no response...We chased again in November and they claimed they needed more time."

For its part, HMRC says its approach to these larger business settlements is to ensure "they pay the right amount of tax has been endorsed by the National Audit Office...It is wrong to suggest that HMRC officials are too lenient on large businesses. Large businesses pay around 60% cent of total UK tax receipts. We collected a record £468 billion in taxes last year."

HMRC has now declared it inappropriate to comment any further and says it won't make any more public comments until it's reviewed and responded to the proceedings.