MP calls for tax chief to quit

A leading Tory MP on the Treasury committee called today for the boss of the Inland Revenue to quit over claims he brokered a secret, cut-price tax deal with Goldman Sachs.

Jesse Norman demanded Dave Hartnett, Permanent Secretary at HM Revenue, go after reports that he charged Goldman Sachs £10 million less than it owed. Mr Norman said the claims contradicted Mr Harnett's evidence to the committee last month: "[He] told me that the Revenue never charged less than the tax owing," said Mr Norman.

The Guardian and Private Eye have alleged the Revenue failed to charge interest or penalties on Goldman after the US bank sought to avoid paying tax on some of its UK activities. The Inland Revenue denied the allegations and said Mr Hartnett had no plans to quit. Goldman Sachs declined to comment.