HMRC has published its new 'code of governance' to resolve high profile tax disputes.

Announced by the department's first tax assurance commissioner, Edward Troup, it is a direct attempt to stave of damaging criticism following allegations of 'sweetheart' deals struck with Vodafone and Goldman Sachs.

Troup, who took over from Dave Hartnett in August and sits on HMRC's executive committee, said: 'We promised more transparency about our decision-making processes for tax disputes through a new code of governance.

'Our governance is designed to ensure that the decisions we make about resolving tax disputes are consistent with our litigation and settlement strategy. Our processes must be proportionate to the point in dispute and consistent with managing the tax system in a way which is efficient for both taxpayers and for HMRC.

'We want our governance to support, and not impede, the efficient administration of tax. We aim to make things run as smoothly as possible, without introducing delays, drawing on the best practice we already have. And we will also aim to make clear to customers when there are governance steps to be taken in their case.'

The code includes significant stakeholder feedback from a draft version published in July. It outlines how the tax assurance commissioner will be involved in 'sensitive' cases which could significantly affect HMRC policy, strategy or operations, especially those that break the £100m barrier.

Back in June, an NAO probe - headed up by former High Court tax judge, Sir Andrew Park - examined HMRC's approach in five large un-named tax settlements, two of which are believed to be Goldman Sachs and Vodafone.

The government's audit watchdog concluded that all five settlements were 'reasonable and the overall outcome for the Exchequer was good'.

But the NAO expressed concerns about the settlement process, poor internal communication about the decision-making process, shoddy governance arrangements and not always obtaining the appropriate legal advice.

It also criticised the way settlements were not fully complaint with HMRC's litigation and settlement strategy.

Margaret Hodge MP, chair of the Public Accounts Committee (PAC), dubbed the deals as sending a message that 'it's one rule for big business and another rule for everyone else'.

Troup's brief includes shaping tax policy and strategy, tax professionalism, as well as overseeing and providing assurance of large tax settlements.

Mark Cawthorn, CCH tax expert, said: 'The code should secure more reliable and consistent decision making, which is good. Whether, with roles now for the "Tax Disputes Resolution Board" and the Tax Assurance Commissioner himself, there is a risk of the process becoming overly bureaucratic, or of a lack of flexibility that may make sensible settlements in particular cases more difficult, remains to be seen.'