Where have all the experts gone?

Much excitement has been generated by Dave Hartnett’s appearance before the Public Accounts Committee and the matter of how Goldman Sachs got away with paying no interest on a substantial settlement following the failure of their Employee Benefit Trust, says Simon Sweetman.
However they may not be paying more tax any time soon, as they have just posted a $393m loss.
What in some ways was more interesting was the admission that nobody else in the senior management of HMRC has a “deep knowledge” of tax.
That is no surprise: the names of the members of the board are publicly available. It is not how things used to be done in the days when the Inland Revenue was run by the chief inspector, and he and virtually all his underlings were tax people who had served their time on the front line. But then that was how things used to be done everywhere, and the chairman of the board of Warrington Widgets would have done time on the shop floor, even if only a couple of years as the boss’s son.
At some point in the last 50 years (and I suppose it runs along with the decline in manufacturing – indeed is probably a major cause of that decline) management, “leadership”, and bean counting became more important than knowing what the job was.
Continued...
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I remember... 1 thanks
back in about 92, the way in which graduates were recruited to the Revenue changed - and before you even got to first base for consideration for interview you had to pass a demanding timed maths and numerical reasoning test - if it takes 4 boy scouts this long, how long wd it take six girl guides etc etc. Fine if you're very numerate and can do simultaneous equations in your head - not though if not. I thought then: this will mean that a lot of clever people who are good with words and ideas and accustomed to the exercise of judgement - like so many of the old-fashioned Inspectors whose absence is so much lamented now - will not get in; and we will have a HMRC staffed with people who can do sums and are 'number clever', but not much more. And so, to the enormous disbenefit of HMRC and all taxpayers, it has come to pass. The sub-literate communications that one so frequently receives from HMRC nowadays is just the tip of the iceberg - the damage has gone much deeper. Tax is a word game, not a numbers game, although it sounds in money at the end of the day - and HMRC cut themselves off from a large number of first-class minds who would have moved easily with the law and would have given them the technical, intellectual and judgemental strength that they now so clearly lack pretty well right across the board, even in many policy seats. Whose bright idea was that I wonder? Is it too late to repair the damage?
Where Are The Experts 1 thanks
Interesting to note that many of the senior management in HMRc have interesting backgrounds, which have nothing to do with either Tax, Customes or excise.
Mike Clasper - CHAIRMAN HMRC - "Mike joined HMRC on 1 August 2008 from Terra Firma Capital Partners Ltd where he was Operational Managing Director. He was formally Chief Executive at the airport operator BAA plc."
Lesley Strathie, Chief Executive and Permanent Secretary - "Lesley joined the Civil Service in 1971 straight from school as a clerical assistant in the Department of Health & Social Security"
Steve Lamey, Director General Benefits and Credits - "Steve graduated in Mining Engineering at University College Cardiff in 1978 before starting work with the BOC Group. He had a wide variety of roles there, working in project engineering and management roles before moving on to operational, commercial and senior management jobs. He became Director of Global Information and Management User Services in June 1998. In 2000, Steve joined the British Gas Group as Chief Information Officer and Vice President Information Management (IM). He was responsible for development and delivery of business strategy and services, ensuring that IM added business value."
Phil Pavitt, Chief Information Officer- "Phil has over 25 years experience in both private and public sector organisations and was previously CIO of Transport for London, where he led a major overhaul of the IT function. Prior to this he had held positions as CIO at OneTel and NTL."
So there you go, senior management with a wealth of background in dealing with tax, or not?
Technical knowledge
Do you think the MD of British Coal knows how to work an underground drilling and blasting machine.... Or the MD of Qantas can fly a plane?
Technical Knowledge 2 thanks
Perhaps that is why there is little or no British Coal ( it all seems to come from abroad ) and why Qantas planes are "in the wrong place" after a strike?
Would you suggest to your clients that their accounts should be dealt with by an Accountant or by someone who "runs their own business"?
I was not suggesting that HMRC Senior management could have no other backgrounds, but if they are not au fait with the business of taxation, how can they possibly be the best people to manage such a huge and complex organisation, or may be some folk don't believe their is a problem with HMRC?



Bean counters
Bean counters at senior management levels are and have been, the scourge of British industry for many years and IMHO have been solely responsible for the demise of R&D, product development and manufacturing since the mid 70's.
Next we have (so called) Business Angels who do not have a single iota of techincal, managerial and marketing sense. It is all about bean counting. I have had to stand by and watch many a world-class product or idea have the plugged pulled at the last hurdle simply because these bean counters do not have the slightest incling of real world issues, especially when the last hurdle requires a wait while a third party (Microsoft et al) sort out a problem.
The most distressing thing is that having the plug pulled inevitably means that the individual or small company involved, ends up being liquidated as the "angel" morphs into a voracious predator that sees the assets which the individual or small company has been coerced into putting on the line are stripped. This usually involves the family home.
I have nothing but contempt for them.