The scheme was originally designed to circumvent national insurance liabilities of £23.2 million payable on the bonuses. As many as 22 companies operated similar schemes – called employee benefit trusts – until the HMRC successfully challenged them in court in 2005 when HMRC obtained full payment of outstanding national insurance liabilities from 21 companies using such schemes but waived penalties and interest.
Only Goldman continued to challenge the ruling and in the years since 2005 interest and penalties due on the original £23.2 million had mounted to nearly £40 million, according to Private Eye which said it has seen the relevant papers detailing the settlement which waives penalties of nearly £20 million. HMRC has also attracted criticism for a tax settlement deal it agreed with Vodafone
