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Parliamentary watchdog will not investigate Cameron over tax affairs | Parliamentary watchdog will not investigate Cameron over tax affairs |
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David Cameron will not face an investigation by parliament’s standards watchdog after a Labour MP complained that the prime minister had not declared a shareholding in his late father’s offshore fund. | |
Kathryn Hudson, the parliamentary standards commissioner, has decided not to investigate the matter dating back to Cameron’s time as leader of the opposition. Her office refused to explain the reasons for the decision. | |
Related: The Panama Papers: leaktivism's coming of age | Micah White | Related: The Panama Papers: leaktivism's coming of age | Micah White |
The complaint was submitted by John Mann, the campaigning Labour MP, after Cameron revealed he once owned £30,000 of shares in Blairmore, the Panama- and Bahamas-based law firm. | The complaint was submitted by John Mann, the campaigning Labour MP, after Cameron revealed he once owned £30,000 of shares in Blairmore, the Panama- and Bahamas-based law firm. |
The prime minister said he made a £19,000 profit from selling his shares in the offshore fund in early 2010. He was forced into the admission in the days after Blairmore was named as a client of Mossack Fonseca, the law firm at the centre of the explosive Panama Papers leak reported by the Guardian and other global media organisations. | The prime minister said he made a £19,000 profit from selling his shares in the offshore fund in early 2010. He was forced into the admission in the days after Blairmore was named as a client of Mossack Fonseca, the law firm at the centre of the explosive Panama Papers leak reported by the Guardian and other global media organisations. |
Cameron did not register the holding with the parliamentary standards commissioner because it was below the threshold for usual disclosure. However, MPs are also meant to declare interests that “might reasonably be thought by others to influence his or her actions, speeches or votes”. Submitting the complaint, Mann said action would have to be taken, arguing that Cameron had “broken the rules and principles of standards in public life”. | |
At the time of the row, the prime minister said he had followed all the rules for the registration of shareholdings in full. “The Labour party has said it would refer me to the commissioner for parliamentary standards. I have already given her the relevant information and if there is more she believes that I should say I am very happy to say it,” Cameron said. | At the time of the row, the prime minister said he had followed all the rules for the registration of shareholdings in full. “The Labour party has said it would refer me to the commissioner for parliamentary standards. I have already given her the relevant information and if there is more she believes that I should say I am very happy to say it,” Cameron said. |
Related: Spotlight-style Panama Papers movie in development | Related: Spotlight-style Panama Papers movie in development |
Cameron said he sold his shares in the offshore trust Blairmore Holdings in January 2010, five months before becoming PM, because he wanted to avoid any conflict of interest. “I did not want anyone to be able to suggest that as prime minister I had any other agendas or vested interests. Selling all my shares was the simplest and clearest way that I could do that,” Cameron told the Commons in a statement about the Panama Papers leak. | |
The prime minister said at the time that he had given information on the affair to the parliamentary standards commissioner. The prime minister also used the Commons address to explain why he had not made all relevant information public sooner, after he avoided questions for a week about whether he had ever benefited from Blairmore. | |
He said: “I accept all of the criticisms for not responding more quickly to these issues but, as I said, I was angry about the way my father’s memory was being traduced. I know he was a hardworking man and a wonderful dad and I’m proud of everything he did to build a business and provide for his family.” | |
Cameron also faced questioning over a £200,000 gift from his mother, which followed the £300,000 inheritance he received after the 2010 death of his father, Ian. The payments by Mary Cameron to her son in May and July 2011 were given tax-free, and will become liable to inheritance tax of up to 40% only if the prime minister’s mother dies within seven years of handing over the money. There is no suggestion that they have broken any rules. | |
Cameron said parents should not be embarrassed about passing money on to their children, and insisted it was something “fully recognised” in the tax system. | Cameron said parents should not be embarrassed about passing money on to their children, and insisted it was something “fully recognised” in the tax system. |
The Labour leader, Jeremy Corbyn, dismissed the PM’s Commons statement at the time as “a masterclass in the art of distraction” and suggested Cameron did not understand public anger over tax avoidance and evasion. | The Labour leader, Jeremy Corbyn, dismissed the PM’s Commons statement at the time as “a masterclass in the art of distraction” and suggested Cameron did not understand public anger over tax avoidance and evasion. |