Goldman Sachs Group, Inc (NYSE:GS) $31 million tax evasion under scrutiny – GOOG, SBUX
Northern, WI 05/03/2013 (tradewatchmedia) – According to an advocacy group, the Goldman Sachs Group, Inc (NYSE:GS) (Closed: $143.67, Up by 0.74%) deal with U.K officials saved the bank close to $31 million (20 million pounds) in taxes. The two day hearing will review the deal. The group which is named UK uncut is challenging this deal at the judicial review. The group is criticizing the decision that has been taken by the tax agency, Her Majesty’s Revenue and Customs. Last year the lawmakers had said that the company owes close to 10 million pounds in tax.
Tax waiver granted
The agency had asked that the company be forgiven from paying the tax which they said was actually in the range of 20 million pounds. The U.K government has vowed to come down heavily on any schemes that promote any kind of tax avoidance. This has been the result of extensive public and media anger that was caused by the scale of corporation taxes paid by companies such as Google Inc (NASDAQ:GOOG) (Closed: $829.61, Up by 1.12%), Starbucks Corporation (NASDAQ:SBUX) (Closed: $60.38, Up by 0.40%) and Amazon, in the country.
In a report last week lawmakers said that they had increased the level of transparency in the tax affairs of companies and that the pressure is now “on”, on international companies to pay their fair share of taxes. A lawyer who was representing the advocacy group in a London court, Ingrid Simler, said that if the HRMC had to take a decision regarding a similar issue, it would have made the exact same decision. A spokesperson for the New York-based bank declined to comment on the matter saying that Goldman Sachs is not involved in the current lawsuit.
UK Uncut is involved in lobbying for alternatives to conventional government-spending cuts said that the deal between Goldman and HRMC goes way back to 2010. The company ended up paying back taxes that were owed on banker’s bonuses on National Insurance payments. However, the interest on those taxes had been forgone. The UK Uncut lawyers said that former tax secretary Dave Hartnett who had been instrumental in sealing the deal in 2010 had gone against legal advice as well as an internal HMRC review about proceeding with the deal.