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Boris Johnson and Ken Livingstone in on-air tax row | Boris Johnson and Ken Livingstone in on-air tax row |
(about 1 hour later) | |
London mayoral rivals Boris Johnson and Ken Livingstone clashed over their tax affairs in an angry on-air row. | London mayoral rivals Boris Johnson and Ken Livingstone clashed over their tax affairs in an angry on-air row. |
Mr Livingstone says claims he avoided some tax by being paid via a company were "smears". His rival had used "the same arrangement" when an MP, he said. | Mr Livingstone says claims he avoided some tax by being paid via a company were "smears". His rival had used "the same arrangement" when an MP, he said. |
In an LBC radio phone-in, Mr Johnson called him "a bare faced liar" adding: "I always paid full income tax." | In an LBC radio phone-in, Mr Johnson called him "a bare faced liar" adding: "I always paid full income tax." |
A furious Mr Johnson reportedly swore at his Labour rival as the row continued in a lift after the debate. | A furious Mr Johnson reportedly swore at his Labour rival as the row continued in a lift after the debate. |
The row began with a question from a caller to the show, who suggested Mr Livingstone had avoided paying his full income tax. | The row began with a question from a caller to the show, who suggested Mr Livingstone had avoided paying his full income tax. |
It follows weeks of claims he was paid via a company, so he was only liable for corporation tax at 20%. | It follows weeks of claims he was paid via a company, so he was only liable for corporation tax at 20%. |
The issue has been raised several times at prime minister's questions by Conservative MPs keen to support Mr Johnson's re-election bid on 3 May. | The issue has been raised several times at prime minister's questions by Conservative MPs keen to support Mr Johnson's re-election bid on 3 May. |
'Exact same position' | 'Exact same position' |
Mr Livingstone said his arrangement was not a "tax avoidance thing" and to suggest otherwise was a "smear", adding: "I pay my income tax on everything I get." | Mr Livingstone said his arrangement was not a "tax avoidance thing" and to suggest otherwise was a "smear", adding: "I pay my income tax on everything I get." |
But he said he had to pay three members of staff and "you can't do that just on some casual arrangement": "Nobody in Britain employs people and pays income tax on the money they pay them." | |
He said he and Mr Johnson - who have both enjoyed high media profiles as politicians - had been in "the exact same position", as Mr Johnson had a TV production company called Finland Station when he was an MP. | He said he and Mr Johnson - who have both enjoyed high media profiles as politicians - had been in "the exact same position", as Mr Johnson had a TV production company called Finland Station when he was an MP. |
"We both had media earnings, we both put them through a company. You don't avoid tax on that, you have to pay tax on the money you take out." | "We both had media earnings, we both put them through a company. You don't avoid tax on that, you have to pay tax on the money you take out." |
Mr Johnson, the incumbent mayor who unseated Labour's Mr Livingstone in 2008, interrupted, saying: "No! That's not true, that's not true... the guy's a bare-faced liar." | Mr Johnson, the incumbent mayor who unseated Labour's Mr Livingstone in 2008, interrupted, saying: "No! That's not true, that's not true... the guy's a bare-faced liar." |
He said he was "briefly" a director of the company but said it was not right to say he had used it to avoid paying income tax: "I have never used a company to minimise my tax obligations." | He said he was "briefly" a director of the company but said it was not right to say he had used it to avoid paying income tax: "I have never used a company to minimise my tax obligations." |
"I've always paid full income tax." | "I've always paid full income tax." |
'Heat not light' | 'Heat not light' |
Mr Livingstone claimed Mr Johnson would pay £12,500 less tax because he had "won his campaign" to get the chancellor to cut the top rate of income tax on earnings over £150,000 from 50p to 45p from next April - while pensioners would pay more in tax, due to a freeze on age-related allowances. | Mr Livingstone claimed Mr Johnson would pay £12,500 less tax because he had "won his campaign" to get the chancellor to cut the top rate of income tax on earnings over £150,000 from 50p to 45p from next April - while pensioners would pay more in tax, due to a freeze on age-related allowances. |
Lib Dem candidate Brian Paddick told Mr Livingstone he could have set himself up as a sole trader on which "you pay tax on everything you earn": "You have chosen a way of avoiding paying high levels of tax, Boris Johnson of course benefits from the fact that the 50p tax rate is reduced to 45p - he personally benefits from that." | Lib Dem candidate Brian Paddick told Mr Livingstone he could have set himself up as a sole trader on which "you pay tax on everything you earn": "You have chosen a way of avoiding paying high levels of tax, Boris Johnson of course benefits from the fact that the 50p tax rate is reduced to 45p - he personally benefits from that." |
Following the radio debate, Mr Johnson is reported to have sworn at his Labour rival in a lift - a source close to the mayor told the BBC the mayor had been justifiably angry because of "nasty, personal and vindictive lies". | Following the radio debate, Mr Johnson is reported to have sworn at his Labour rival in a lift - a source close to the mayor told the BBC the mayor had been justifiably angry because of "nasty, personal and vindictive lies". |
But a spokesman for Mr Livingstone said: "Boris Johnson lost his temper because he lost the debate - he talked about cable cars, not cutting fares and the squeeze on Londoners." | But a spokesman for Mr Livingstone said: "Boris Johnson lost his temper because he lost the debate - he talked about cable cars, not cutting fares and the squeeze on Londoners." |
Mr Johnson is understood to have privately explained his tax arrangements to Mr Livingstone three weeks ago and asked him to stop making the claims. | Mr Johnson is understood to have privately explained his tax arrangements to Mr Livingstone three weeks ago and asked him to stop making the claims. |
Mr Paddick said the debate had contained "a lot of heat but not much light". | Mr Paddick said the debate had contained "a lot of heat but not much light". |