In the continued fallout after the release of the Panama Papers, British Prime Minister David Cameron faced a barrage of criticism Monday from the House of Commons over revelations that his late father set up an offshore trust that Cameron then benefitted from.
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“We should differentiate between schemes created to artificially reduce tax and those that are encouraging investment”, Cameron told Parliament, defending his government’s record of closing tax loopholes in the United Kingdom.
Cameron has maintained he and his father paid all of their taxes and neither broke any laws. “I obviously can’t point to every source of every bit of the money and dad’s not around for me to ask the questions now”, he told ITV. “This is an entirely standard practice and it is not to avoid tax”.
On a personal note, he said, “There have been some deeply hurtful and profoundly untrue comments made about my father”.
Next month, Britain’s government will host the world’s first worldwide anti-corruption summit in London.
“As for parents passing money to their children while they are still alive, it is something the tax rules fully recognise”, he said.
No 10 originally said the PM’s financial affairs were a “private matter” and it was only several days and several Downing Street statements later that Mr Cameron revealed he had profited from selling shares in Blairmore Holdings.
On Sunday, Cameron published a summary of his tax returns since 2009, becoming the first British leader to do so. A 40% Inheritance tax is paid on estates worth more than £325,000 in Britain.
The figures show that Cameron was left £300,000 tax free as an inheritance following the death of his father in 2010.
Cameron said publishing his tax information had been “unprecedented”.
Osborne earned 198,738 pounds (US$283,700) with 44,647 pounds of earnings coming from dividends derived from the family’s luxury home-decorating company, Osborne & Little, according to the document published on the Treasury’s website.
“With (Other OTC: WWTH – news) regard to those in charge of the nation’s finances, the prime minister takes that the view that chancellors and shadow chancellors should show transparency.”Osborne is seen as one of the contenders for Cameron’s job when he steps down before the next election, due to be held by 2020”. Cameron is the leading proponent staying in the European Union, and anything that tarnishes his brand could undermine that campaign.
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The force will be led by HMRC – Britain’s tax authority – and the National Crime Agency, and will investigate the leaked files from Mossack Fonseca. Had she left the sum to the Prime Minister in her will, it would have been. But the headlines have served to remind the public of Cameron’s wealth and privilege, allowing opposition politicians to paint him as remote from the financial worries of ordinary people.
