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Cameron under fire for family's tax avoidance

Ian Cameron ran investment funds in Panama and Geneva aimed at avoiding UK tax.

Cameron leaves Number 10
David Cameron leaves Number 10. Photograph: Getty Images

The Guardian reports that David Cameron's father made his family fortune through a network of offshore funds in countries like Panama and Geneva, which "explicitly boasted of their ability to remain outside of UK tax jurisdiction".

Ed Howker and Shiv Malik write:

The structure employed by Cameron senior is now commonplace among modern hedge funds, which argue that offshore status can help attract international investors. UK residents would ordinarily have to pay tax on any profits they repatriated, and there is nothing to suggest the Camerons did not.

Nevertheless, the dramatic growth of such offshore financial activity has raised concerns that national tax authorities are struggling to pin down the world's super-rich.

The news has sparked mixed reaction. The tax campaigner Richard Murphy points out that it leaves the prime minister open to charges of hypocrisy. Despite inheriting £300,000 from his father after his death, Cameron is seemingly against the sorts of practices which were used to earn that money, saying about a general anti-avoidance rule that:

One of the things that we are going to be looking at this year is whether there should be a general anti-avoidance power that HMRC can use, particularly with very wealthy individuals and with the bigger companies, to make sure they pay their fair share.

On the other hand, many have agreed with the sentiment expressed by Sally Bercow, who wrote:

Not liking Guardian front page on Cameron family fortune. At all. Raking around his dead father's affairs - not on. And Dave is not his dad. Feel a bit sick having read it actually. Am clearly going soft. I say attack Dave, not his late father...

Downing Street is sticking to the latter line, telling the Guardian that it did not want to comment on what was a private matter for the Cameron family.

The problem the Camerons have is that, as the debate over whether or not George Osborne pays the 50p tax demonstrated, wealth is as much a political issue as income. And while the latter can be safely divided between personal income, knowledge of which may be in the public interest, and family income, which isn't, the former is harder to draw a line through.

Accusations that the prime minister is "out of touch" are fundamentally rooted in his family history and the privilege that it bequeaths him. If examining that history is out of bounds, then the debate is forced to focus more heavily on wealth than income – which can distort the debate.

31 comments

John L Roberts's picture

"The tax campaigner Richard Murphy points out that it leaves the prime minister open to charges of hypocrisy"

Well of course writing articles in national newspapers about employing a nanny through a company, running service companies to avoid NI, using Amazon to sell his book, taking his wife into partnership for tax reasons (all of which Murphy has admitted to) also leaves Murphy open to charges of hypocrisy.

As does the Guardian which has had numerous high profile stories about its own tax affairs (including activity in tax havens).

And then there's Ken Livingstone...

Super Huey's picture

I'd be interested to see how many Labour MPs jump on this bandwagon and attack the Tories. Like some of you have said wealthy individuals/families aren't confined to just the Tories, I won't be surprised if the two Ed's are filthy rich. If they make a big scene over it well when push comes to shove we can always hold yet another inquiry which seems to be the norm these days and crack open a whole load of hypocrites.

FA's picture

Isn't 300k less than what Ed Miliband inherited?

Christie Malry's picture

Precisely what tax was avoided? The moment any of the money is brought back into the UK, it becomes taxable. The Guardian article was at pains to stress this point and to say that they had no evidence that the Camerons had failed to comply with this basic obligation.
I mean, a story about tax avoidance where you can't even articulate how much or even which tax has been avoided is a pretty weak story, isn't it?

ACMJ's picture

OH Cameo ! Oh Cameo! Wherefore art thou Oh cameo!? Thou have been found out to have a real name of " Hypocracious " , as art thy most loyal wealthy Tory friends .
Thy pretentious concern for the common people art as comical as thy " Joke " partner Nick Clegg as he keeps ye and thy contemptuous colleagues in power.
Perhaps something in the tone of Oliver Cromwell with a bit of cynicism . No doubt the right wing will come up pointing some equal corruption in the main opposition party for justification for Tory corruption which existed long before the labour party was formed .
Rather sad that British politics has gone down hill so much since the late 1970's that the politicians have forgotten why people used to elect them ! Well Labour and in recent times the Liberal party have certainly forgotten , just thinking about lining their own pockets and forgetting about the common voter . The Tories have remained more or less the same as "free Market " demands of them really , so no corruption shocks there !
As unemployment and homelessness increases in the UK , the Tory faction of the media still try and justify the coalition's stance . The question is are the voters willing to accept the excuse being offered by such media ?

New Stateswoman's picture

All the more reason to get rid of the role of prime minister altogether. I've said it on other blogs and I'll say it here again. We need to abolish Parliament without delay and get back to true democracy. Dismantle the party system, which would get rid of cross-party bickering and woolly right/leftist thinking and elections at local level would decide who best serves their best interest. All major decisions to be put to national referendum. Parliament would then be a true democracy, engaging the people at all levels. Not the dictatorship it seems to have become.

New Stateswoman's picture

All the more reason to get rid of the role of prime minister altogether. I've said it on other blogs and I'll say it here again. We need to abolish Parliament without delay and get back to true democracy. Dismantle the party system, which would get rid of cross-party bickering and woolly right/leftist thinking and elections at local level would decide who best serves their best interest. All major decisions to be put to national referendum. Parliament would then be a true democracy, engaging the people at all levels. Not the dictatorship it seems to have become.

nsmres's picture

One Mr Eric A Blair would despair at the state of Hypocrisy of the Left wing movement today. I am sure he would have given up on "More Equal Pigs"

mbrecker's picture

Just like in the States, you can have a go at Romney, Obama, Cameron, Ken and Boris and everyone else you want. That won't change one fact. Despite the endless "coverage" of their taxes, the actual tax shelters and tax code overall won't be changed. If you do that, you'll drive away intl. investors. Every major banker in London will move to Geneva.

Total rubbish. Then again, it's an election year for many. So who cares?

NSMRES's picture

Guardian for some not so strange reason never opens comments on the tax dodging. They know its pure propaganda and does not want fact to come in way of propaganda.

Lucidus's picture

More likely that they don't want idiots making libellous comments.

Lucidus's picture

More likely that they won't idiots making libellous comments.

nsmres's picture

BS, they do exactly what Barclays did and I am doing exactly what they did.

hugh markey's picture

Original Sin according to the Bible is an inheritance taxing of some kind. The fact that old Adam is no longer with us is immaterial.
Didn't Cole Porter write that musical romp - Panama Hattie? In 1942 Hollywood made a movie of the Broadway show.
"Did I get stinkin' at the Club Bullington!" Now that tune really swung - does even to this day!
If this goes on by next July we really will have collided with Mars.

Well, did you evah?

Benjamin Rae's picture

The difference being the Guardian isn't imposing austerity on a grand scale under the slogan 'we're all in it togther'

NSMRES's picture

Benjamin, Liar Liar pants on fire!

Guardian is lying scheming hypocrites. Ditto Leftist.

DMyers's picture

I suspect you're confusing the Guardian and the Government. Easy mistake to make.

nsmres's picture

If only guys in left were a little tolerant of others and ready for some truth, they would find links detailing the case. Incidentally the links have Guardian apologists losing stupid argument.

My violent pig is freedom fighter; you one a terrorist. Is it?

Tesco Shelf Stacker's picture

I'll start taking seriously stories from the Guardian about tax avoiding MP's when the Guardian starts paying its taxes too - the Guardian Newspaper is probably one of the most slippery corporate avoiders of tax in Britain today - hypocrites.

So Camerons late father avoided paying tax (legally) - not in the least bit surprised at this to be honest - in fact I would bet that most of the Labour front bench are probably in the same boat.

Celeriac's picture

Ed Miliband's father is a Marxist. I doubt he has offshore accounts in order to evade tax.

kenelmist's picture

"is"?! - what a plonker. Ralph Miliband died in 1994.

Celeriac's picture

Yes, I wasn't sure. But I knew I could rely on a pedant.....

nsmres's picture

Soviet Russia is not offshore, you mean?

Lucidus's picture

Could you provide some facts to back up your assertions?

Eddy S's picture

I thought Cameron dad had died?

Gracie's picture

I don't think because Cameron's father is dead that his dubious tax exploits should be forgiven and forgotten and Cameron must have known about his father's practices, after all wasn't it Cameron who boasted that the "City is in my blood"?

Cameron is not averse to using anything and anyone dead or alive to further his own political aspirations so he can take the rough with the smooth too.

Just one more gross hypocrisy revealed about David Cameron, thoroughly unpleasant, dishonest arrogant man and totally incompetent too.

Ziggy's picture

Think you might find Anthony Lynton Blair as more dishonest and James Gordon Brown as more incompetent, unpleasant and arrogant. Just a thought.

NSMRES's picture

Grauniad is the greates hypocrite tax dodger, traitor of this country. Autrotrader the biggest rip-off merchant.

Oxymoron's picture

Dirty Dave's dead diddling daddy.

NSMRES's picture

Grauniad hypocrite's useful idiot.

NSMRES's picture

What a pathetic newspaper Grauniad is!

Maybe Grauniad is unhappy with probe of taxation on fake Charities and Trust? It has been alleged that it has committed

http://www.fcablog.org.uk/2011/02/the-five-howlers-made-by-the-guardian-...

http://timworstall.com/2011/02/23/the-guardian-on-the-guardians-tax-affa...

Grauniad is biggest whinging hypocrite so familiar with leftism that it has stopped making anyone disgusted. (Unless they are new to this)

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