Today the High Court will hear evidence in the full hearing of the legal case against HMRC over the Goldman Sachs ‘sweetheart' tax deal.

The case is being brought by the NGO, UK Uncut Legal Action, an organisation inspired by the anti-cuts direct action group UK Uncut. The case centres around a deal which was personally negotiated by Dave Hartnett, the former tax chief with Goldman Sachs resulting in the global investment bank being let off paying up to £20 million in interest charges.

UK Uncut Legal Action claims the deal was unlawful as it breached HMRC's own guidelines that state that tax payers should be treated equally and no discounts or deals are to be done. Law firm, Leigh Day has advised UK Uncut Legal Action that the agreement reached was in direct contradiction of HMRC's own statutory duty to collect tax properly due, and its litigation settlement strategy prohibiting package deal settlements or settlements where HMRC splits the difference with the taxpayer.

The case was granted permission to go to a full hearing in June 2012 — just 1 day before the NAO concluded its judge led investigation into tax settlements which found that the Goldman Sachs deal was ‘reasonable'. However, the Guardian recently revealed that the Head of the NAO, Amyas Morse, who set up the ‘independent' review, appeared to undermine the process before it had even started by telling Dave Hartnett that the inquiry would find ‘nothing of substance'.

Anna Walker, spokesperson for UK Uncut Legal Action said:

“We are taking this case forward to get this deal declared unlawful in the High Court so that HMRC is no longer under the misapprehension that it is either legally, nor politically acceptable to let big business off paying the tax that they owe. It's vital because HMRC have tried to cover up these tax deals every possible way. They have stone walled the Public Accounts Committee, white washed the NAO report, criminalised a whistle blower and have fought this legal case every step of the way.

“Every year £25 billion is lost to the public purse through tax avoidance schemes such as the one Goldman Sachs used. The government cannot seriously claim to be clamping down on tax avoidance whilst it continues to let companies off millions in tax owed.

“The government's rhetoric that we are all in this together rings hollow as they choose to privatise the NHS, cut legal aid and force people on benefits to pay extra for a bedroom that their disabled child sleeps in rather than stand up to big business and the banks.”

Rosa Curling, a lawyer from law firm Leigh Day, who is representing UK Uncut Legal Action, said:

“We have advised our clients that the deal reached between HMRC and Goldman Sachs was unlawful — it was in direct contradiction to HMRC's duty to collect taxes and to do so properly, fairly and equally. Goldman Sachs is one of the richest banks in the world. The coalition government has stated on several occasions that it is committed to ensuring companies cannot avoid paying the taxes they owe

"Despite this, the government has chosen to oppose our client's claim. UK Uncut Legal Action has therefore had no option but to ask the Court to intervene so it can ensure a clear message is sent to all — that the tax rules apply to all corporations in the same way, however rich and powerful they may be.”

I hope the application is successful. This abuse needs more publicity.