UK taxman toughens stance on big company disputes The UK taxman has toughened its stance on disputes with big business in response to public pressure over alleged "sweetheart" deals, companies say. Three-quarters of such groups surveyed by Clifford Chance, a law firm, said HM Revenue & Customs had "generally become more aggressive in recent years." Only one in 10 thought it had become easier to settle a dispute. An Oxford university study also found a widespread view among big businesses that HMRC has taken a firmer line since it came under fire over its handling of tax disputes, notably a 2010 "sweetheart" deal with Goldman Sachs, where it let the investment bank off paying interest. About half of companies that have frequent disputes with HMRC believe its approach has changed, according to preliminary findings from the Oxford University Centre for Business Taxation. Companies told researchers tax officials were adopting entrenched positions to ensure they were not seen as "giving in." One said: "Because everyone within HMRC is afraid of being dragged before the [Public Accounts Committee] and Margaret Hodge, nobody is willing to overrule the specialists." The PAC, a parliamentary committee, and Ms Hodge, the MP who chairs it, have in the past accused HMRC of a "loss of nerve" in mounting prosecutions and a "far too cosy relationship" with large companies that resulted in such groups receiving more lenient treatment than smaller companies. Edward Troup, the HMRC tax assurance commissioner appointed in 2012 to oversee the settlement of disputes in an effort to shore up public confidence, rejected both strands of criticism as extreme views that confirmed the authority was "going down the middle" and taking tough positions without being hostile. In an interview with the Financial Times, Mr Troup said he was "quite proud" of his colleagues for being thought intransigent if that meant "sticking to the letter and the spirit of the law." He said he was also happy to be charged with having a "cosy" relationship with big business if that meant "good, collaborative, grown-up working" with taxpayers that paid 60 per cent of UK tax. He said HMRC continued to take businesses to court. One company told the Oxford researchers, "HMRC [is] now more timid and less willing to find a solution - even though the net result for UK plc might be positive." Another said: "HMRC are neurotic about not doing a Goldman-type deal." Liesl Fichardt, head of tax disputes at Clifford Chance, said its survey highlighted companies" concerns about the difficulty of reaching agreement with HMRC, but it also provided evidence that the tax regime was viewed as competitive and the clampdown on avoidance was seen as effective. One client told the law firm that "on the surface, [the UK tax regime] looks attractive, but HMRC are still unnecessarily aggressive," while another said the "UK is fiscally challenged, so the aggression will continue." A more positive slant was given by one that said: "[I'm] not sure I would use the word aggressive, but they are definitely digging further and more robustly than 12 to 18 months ago." The CBI the employers" organisation, said the UK's tax regime had become much more competitive over the past five years but HMRC enforcement had remained "appropriately tough" over the period. Will Morris, chair of its tax committee, said: "This new competitiveness is built on changes in the law, not any leniency on the part of HMRC."