Britain’s controversial tax chief to quit next year, but whistleblower faces prosecution

Controversial British taxman David Hartnett, accused of showing undue favours to the likes of Goldman Sachs and Vodafone, is finally set to quit by next summer, even as the whistleblower in his department who exposed him faces disciplinary action.

Hartnett, the permanent secretary for tax at Her Majesty's Revenue and Customs (HMRC), is being replaced by Lim Homer, who will move in next year from the Department of Transport, it was announced in London on Friday.

The controversial tax chief is accused of having entered into 'sweetheart deals' with Goldman Sachs and Vodafone, benefitting the two major corporations to the extent of  millions of pounds in taxes saved.

In October, he told a parliamentary committee that he had not dealt with the tax affairs of Goldamn Sachs, the US investment bank. However, Osita Mba, a solicitor with the HMRC, exposed him by pointing out that the deal with Goldman was illegal. He raised concerns with the parliamentary committee and the National Audit Office under a legislation encouraging whistleblowers.

Mba claimed that the HMRC had illegally written off nearly £10 million tax claims on Goldman in a secret deal entered into by Hartnett. Following the exposure, the tax chief admitted it was a mistake, and apologised to the parliamentary panel, but denied it was an illegal 'sweetheart deal.'

Surprisingly, Mba himself is now facing a probe and could be sacked for revealing 'sensitive information.'