The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Sweetheart Tax Deal for Goldman Sachs

On the wires: Goldman Sachs has been rated A+ by S&P pushing it a notch lower from its AA-. A one notch downgrade is unlikely to change its borrowing programme (or collateral requirements in the EZ economics) Of course the wire was a falsie as S&P rating for GS is a A-, already notches lower as the firm reorganises around fee income business and asset management


Goldman Sachs seems to have gotten over the trouble from a whistleblower in the UK Office as Inland revenue has rejected the whistleblower’s claim that the Tax office overlooked nearly GBP 20 mln in revenue. However the HMS investigation is likely to park the request from back taxes to a hefty GBP 6 mln based on informal deals regularly struck by tax officials

Revenue and customs managers are facing demands for reform after MPs accused them of using “a veil of secrecy” to keep from scrutiny their “sweetheart” corporate tax deals worth billions.

A report by the Commons public accounts committee says it has uncovered “specific and systemic” failures in Britain’s tax-gathering agency while investigating deals with Vodafone and Goldman Sachs, which have attracted mass protests.

The committee chair, Margaret Hodge, accused HM Revenue & Customs (HMRC) of making a “policy decision” not to disclose information and using a “veil of secrecy” by citing “taxpayer confidentiality”, which denied accountability to the public or parliament about whether deals provided good value for money.

Vodafone settled a similar claim for GBP 1.25 bln. Goldman Sachs is claimed to have gotten away with bonus payments not put under the tax eligibility by concerned HMRC officials as per the Guardian

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