New rules see Tory donor in tax dilemma

Under new election rules, Tory donor Lord Ashcroft will be forced to reveal if he pays tax, or he will have to stop helping fund the party. Having been made a Conservative peer in 2000, Ashcroft guranteed he would pay UK taxes, but now refuses to discuss what he calls 'private affairs', the Telegraph reports. His Tory donations are given through his British-based company, Bearwood Corporate Services. A lot of his businesses are located in Belize in Central America, causing some to allege that he can use his overseas links to legally avoid having to pay some or all of his British tax liabilities. Last week, the government approved an amendment to the Elections Bill which is currently going through Parliament, inserted by the House of Lords that requires large party donors to be 'domiciled' in the UK for tax reasons. Pushed through without a vote on Monday night, the new amendment will effectively ban anyone who does not pay UK taxes from donating more than £7,500 per year. Shadow Cabinet Office minister Francis Maude, said: 'This is a blatant piece of partisanship which Jack Straw has been bounced into by his backbench colleagues.' But Straw said this isn't about just 'one party' and insisted that a number of non-domiciles would also be affected.
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