Former tax chief set to join leading accountancy firm

Former top tax official Dave Hartnett has been appointed to a leading accountancy firm a year before Whitehall restrictions that prevent him lobbying the Government and advising UK companies on reducing their tax bill expire.

Mr Hartnett, who was sharply criticised by MPs over “sweetheart” deals with major corporations during his time heading HM Revenue and Customs, will work one day a week for Deloitte – whose clients include Vodafone and Starbucks – as an adviser to foreign governments and tax regimes.

His appointment was subject to approval by David Cameron and the advisory committee on business appointments, and a series of conditions – including a ban on advising companies whose cases he was involved with while at HMRC – was attached.

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He has also been told that he cannot engage in any work considering how UK taxation for Deloitte’s clients can be mitigated or avoided, and that he may not become personally involved in lobbying Government on behalf of his new employer.

But the restrictions will fall away in July 2014, two years after Mr Hartnett left HMRC.

Deloitte said he would work as a consultant for the firm “advising foreign government and tax administrations, primarily in the developing world”.

It added: “He has significant experience in advising such countries on the development of effective tax regimes, necessary to ensure their continued economic growth. He will not work with UK companies or with HMRC.”

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A spokesman said the role would not involve advising private sector clients. There was no intention for the role to change now or in a year’s time, he added.

MPs criticised HMRC during Mr Hartnett’s period in charge over its “unduly cosy” relationship with major companies.

In a report in December 2011, the public accounts committee expressed concerns over banking giant Goldman Sachs being allowed to skip a multimillion pound interest bill on unpaid tax.

Mr Hartnett apologised to the committee over the “mistake” but insisted no “deal” was done. He was repeatedly accused of lying during a hearing before MPs.