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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 7 hours later) | |
London mayoral rivals Boris Johnson and Ken Livingstone have clashed over their tax affairs in an 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 debate, Mr Johnson called him "a bare-faced liar" adding: "I always paid full income tax." | |
Mr Livingstone later closed a website attacking his rival, saying the contest had become "dark and negative". | |
The clash followed weeks of claims Mr Livingstone was paid via a company, Silveta Ltd, so he was only liable for corporation tax at 20%, rather than paying full income tax. | |
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." | 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 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." |
'Heat not light' | 'Heat not light' |
Lib Dem candidate Brian Paddick told Mr Livingstone he had "chosen a way of avoiding paying high levels of tax" and said Mr Johnson would "personally benefit" from the government's reduction in the top rate of tax. | |
He said the debate had contained "a lot of heat but not much light". | |
Green Party candidate Jenny Jones added: "Just for the record, I have one salary and I happily pay tax on it - it's a social thing." | Green Party candidate Jenny Jones added: "Just for the record, I have one salary and I happily pay tax on it - it's a social thing." |
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 he had been justifiably angry because of "nasty, personal and vindictive lies". | |
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. |
Later, href="http://www.kenlivingstone.com/lets-argue-about-who-will-make-londoners-better-off---ken?Init=ed14d573-d4e2-4f54-1dc5-539f53832cc2" >in a blog entry, Mr Livingstone said he was closing his attack website and urged Mr Johnson to do the same. | |
"Those of us who are leading candidates in this election have a duty to the electorate to rein it in and direct it to the issues at stake for Londoners," he wrote. | |
"We must take account of Londoners - the people we are trying to talk to. We need to afford them the respect to have a decent discussion about how we address their concerns, their quality of life, the squeeze on their living standards, the future direction of their neighbourhoods and home city. | |
"I suggest to Boris Johnson therefore that he and I work together to raise the tone and spirit of this election." |