The Commons Treasury Select Committee has attacked the Inland Revenue and Customs for alleged maladministration after 200 properties were transferred to an offshore company as part of a 600-property PFI deal with Mapeley, reports the Financial Times.
The project team failed to tell ministers or the boards of the Revenue and Customs that 200 Inland Revenue properties would be owned offshore in the £220m deal, the newspaper says.
The MPs thought it astonishing and ludicrous because government policy aims to reduce tax avoidance. The MPs want national Audit Office to examine the diligence with which the deal was put together.
The Inland Revenue insisted the deal remained good value for money. Mapeley said the transfer of about 200 of the properties offshore was designed to shield them from capital gains tax.
Revenue chairman Sir Nicholas Montagu is under pressure to resign.
Most other national newspaper reports make no mention of Customs & Excise and say the 600 properties all belonged solely to the Inland Revenue.
References: Financial Times 13/02/03 page 4, The Times 13/02/03 page 1, page 2, page 22 (Need to know), page 28 (Commentary), page 33, The Daily Telegraph 13/02/03 page 10, The Independent 13/02/03 page 22, The G
