HMRC has won a £79m case against Goldman Sachs and agriculture giant Cargill after the US companies attempted to avoid taxes in the UK, The Sunday Times reports.
Both companies owned the now-defunct Teesside Power Station in 2006, after its previous owner Enron collapsed in 2001.
Teesside Power sought hundreds of millions of pounds it said it was owed by Enron subsidiaries in the bankruptcy.
It then proceeded, acting on its auditor EY’s recommendation, to set-up a company in Jersey in an attempt to avoid paying corporate tax by converting some £200 million it received into shares.
Her Majesty’s Revenue & Customs objected the structure, and has now issued a £79 million bill following a Court of Appeal ruling this month.
According to The Sunday Times, Cargill and Goldman said in a joint statement: “The decision regarding the interpretation of tax law is disappointing but the parties fully respect the court process. In the meantime, all UK taxes, including those disputed, have been paid.”