A Revenue spokesman told Accountancy Age there is 'absolutely no question of Sir Nicholas Montagu resigning'.

Chancellor Gordon Brown is reported to be absolutely 'furious' with the cock-up that saw £220m worth of Inland Revenue property being sold to a company based in a tax haven.

Howard Flight, shadow chief secretary to the Treasury, described the gaffe as 'obviously an own goal' but lent his support to Montagu by saying he had quite a lot of admiration for him. 'In the main he's done a good job, and it was a very good appointment.'

However, he went on to say: 'There needs to be a pretty thorough investigation into precisely how this happened, and maybe there will be some heads to roll.'

Montagu is set to retire from his position in either March or April next year. But whether or not Brown allows him to see out the remainder of his contract is still in the balance.

Commentators on the subject suggest that a decision will be made within the next two months.

See also:

Montagu defends mistakes

Inland Revenue chairman Sir Nick Montagu has come out fighting following press criticism of his handling of a controversial PFI deal, which saw £220m of property sold to a company registered in the tax haven of Bermuda.  22 May 2003

Revenue insists enforcement is working

The government has brushed aside former Inland Revenue director Peter Black's claim that the Revenue's compliance programmes and investigations into tax evading companies are 'in disarray'.  06 Feb 2003

Former Revenue director slams Montagu

A former director of the Inland Revenue has slammed the establishment for being an 'abject failure' at cracking down on tax-dodging companies.  03 Feb 2003

Its ringing in Sir Nick's ears

Sir Nick Montagu is not unfamiliar with a difficult audience. And so it was at London's Savoy hotel last week when he addressed the Chartered Institute of Taxation president's lunch.  16 Jan 2003

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