MP Calls For Inland Revenue Chief's Resignation Following Bermuda Blunder

by Jason Gorringe, Tax-News.com, London

06 February 2003

Speaking on Radio 4 on Tuesday, Labour backbencher, Austin Mitchell called for the resignation of Inland Revenue chairman, Sir Nick Montagu.

Criticising Sir Nick's handling of the Mapeley Steps debacle - during which the Inland Revenue authorised the sale and leaseback of its properties to a Bermuda-based property company, whilst continuing to take a strong stance on aggressive tax planning by other organisations - Mr Mitchell suggested that the Revenue chief 'should reconsider his position'.

The MP for Grimsby went on to slam Montagu for his failure to concede that the deal amounted to tax avoidance when giving evidence before a Treasury Select Committee last year.

According to reports at the time, Sir Nick argued that tax avoidance - if within the scope of the law - was no reason to discriminate against a bidder, and that it had been a 'pure and simple oversight' which led to him to fail to inform his boss, Paymaster General Dawn Primarolo, that the deal could be misrepresented.

According to the Accounting Web news service, in addition to calling for the Inland Revenue chief's resignation on the grounds that he has 'made fools of everybody', Mr Mitchell also urged the government to implement rules whereby offshore companies are barred from bidding for government contracts, in a similar vein to US rules.

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