Dave Hartnett
David Hartnett | |
|---|---|
| Born | 1951 |
| Occupation | Civil servant |
| Years active | 1976–2012 |
| Known for | Permanent Secretary for Tax at HM Revenue and Customs |
David Anthony Hartnett CB (born ) is a retired British civil servant who held the position of Permanent Secretary for Tax at HM Revenue and Customs (HMRC) until his departure in July 2012. After leaving public service, he provided consultancy on financial crime governance to HSBC, working alongside Bill Hughes, the former Director General of the Serious Organised Crime Agency.
Early life
Hartnett completed a degree in Classics at the University of Birmingham, graduating in 1973.
Career
Beginning his career in 1976, Hartnett joined the Inland Revenue as a graduate tax inspector, spending the initial ten years based in Birmingham. He was promoted to Director of Capital and Savings by 1998. When Inland Revenue merged with HM Customs & Excise in 2004, he assumed the role of Director General for Customer Contact and Compliance Strategy at HMRC, later advancing to Director General for Business.
From HMRC’s inception in 2005 until his retirement, Hartnett was one of Her Majesty's Commissioners of Revenue and Customs, having previously served on the Inland Revenue board as Director General of Policy and Technical.
Following Paul Gray’s resignation as chairman after the 2007 Child Benefit data loss incident, Hartnett stepped in as interim chairman. Once permanent appointments were made—Mike Clasper as non-executive chairman and Lesley Strathie as Chief Executive—Hartnett was appointed Second Permanent Secretary for Tax, with responsibility for tax professionalism.
In May 2013, he took on a role as a tax consultant at Deloitte.
Between 2014 and 2023, Hartnett served on the board of governors at St Mary's University, Twickenham, including a brief tenure as interim Vice-Chancellor in 2020.
Incorrect income tax collection
In September 2010, Hartnett attracted criticism for initially declining to apologise regarding an HMRC issue involving millions of pounds in unpaid but due taxes connected to alleged PAYE collection failures. On BBC Radio 4, he stated, "We didn't get it wrong." Subsequently, he issued a full apology despite no PAYE errors being found.
Corporate tax avoidance
After claims that Vodafone avoided up to £6 billion in taxes, protesters blockaded Vodafone’s UK outlets following reports in Private Eye suggesting preferential treatment possibly linked to Hartnett’s personal relationship with Vodafone’s head of tax, John Connors.
In May 2011, Private Eye revealed that Hartnett personally approved a settlement with Goldman Sachs concerning a longstanding tax dispute dating back to 2002, waiving approximately £10 million in interest without consulting HMRC legal advisors. Allegations emerged accusing Hartnett of direct involvement in settlements and "sweetheart deals" that lacked transparency. Documents leaked and published by The Guardian in October 2011 confirmed these arrangements.
During his retirement dinner in September 2012, activists from UK Uncut presented Hartnett with a mock "Golden Handshake award" for enabling substantial tax savings for Vodafone and Goldman Sachs, prompting a notable confrontation at the event.
While leading HMRC, Hartnett negotiated a tax agreement that effectively granted HSBC bankers near immunity from prosecution related to Swiss tax evasion. In January 2013, he joined HSBC and defended his decision as part of efforts to assist in reforming the bank.
Corporate hospitality
In July 2010, City University London recognized Hartnett as the civil servant in the UK who had received the highest amount of corporate hospitality, having been entertained 107 times within a three-year span. He characterized his method of managing tax disputes involving major corporations as one focused on "resolving conflicts amicably and working alongside clients whenever feasible." According to Hartnett, this approach led to tax settlements that were larger in scale, achieved more rapidly, and incurred lower costs compared to pursuing legal action. Nonetheless, Private Eye disputed this assertion, highlighting agreements like the Vodafone deal, which reportedly resulted in a loss of approximately £6 billion to public funds.
Honours
Hartnett was honored with the title of Companion of the Order of the Bath (CB) during the 2003 New Year Honours.
Personal life
In 1977, Hartnett wed Aileen Patricia Mary O'Dempsey; together they have three children. She practices as a divorce attorney, and the family lives in St Albans, Hertfordshire.