"Cameron faces down critics over offshore dealings - AFP 11 April 2016
LONDON: Prime Minister David Cameron defended his tax affairs and announced a deal to open up Britain's overseas tax havens on Monday (Apr 11) as he confronted critics of his offshore dealings for the first time in parliament.
Cameron this weekend became the first British leader to publish his tax returns after admitting he held shares in his late father's Bahamas-based investment fund, which he sold before he took office in 2010.
"I didn't want anyone to be able to suggest that as prime minister I had any other agendas or vested interests," he told the House of Commons in his first appearance since the Panama Papers put his finances in the spotlight.
Cameron used his statement to announce a new crackdown on tax avoidance and a new agreement with the British Virgin Islands and other tax havens to share information with British law enforcement and tax authorities.
"There's no doubt that in some of these jurisdictions and countries there are some very bad things happening ... and that's why we want our authorities to go through everything they can," the prime minister said.
While not illegal, Cameron's offshore dealings risk undermining his efforts to lead international action against tax evasion, which will see him host an anti-corruption summit in London in May.
Cameron admitted he had not handled well the revelations about his father's Blairmore fund following the leak of documents by Panamanian law firm Mossack Fonseca.
But he rejected the "deeply hurtful and profoundly untrue" suggestion that his father was trying to avoid tax, saying it was a legitimate business to trade in dollar-denominated securities.
And while it was right to "tighten the law and change the culture" to crack down on evasion and aggressive avoidance", Cameron said the government should "defend the right of every British citizen to make money lawfully". He added: "Aspiration and wealth creation are not somehow dirty words.""
Besides this news report, I happened to be watching the live parliamentary debate on this issue on the BBC and the number of MPs speaking and the type of sharp questions asked of the PM are most remarkable. It would be heresy to even suggest that could happen in Singapore's parliament!
Lessons for me are:
1. indeed, making money and creating wealth SHOULD NEVER BE frown upon as long as they are made legitimately;
2. at the same time, to be able to pay tax would mean that one has done quite well against those non-tax paying citizens and residents. As to how much tax will it become a dis-incentive for people to work hard and smart, it is anyone's guess. The most probable estimate would be: is the rate perceived to be 'fair' by the potential 'tax avoidance' crowd instead of being a 'tax evasion' category!;
3. the British parliamentary system is fascinating to me with this debate. One of the MPs was 'asked to leave the Chamber' as he refused flatly to retract the remarks: 'Dodgy Dave' to describe PM David Cameron. All very civil as he was 'sacked' from the rest of the Parliamentary section!!
LONDON: Prime Minister David Cameron defended his tax affairs and announced a deal to open up Britain's overseas tax havens on Monday (Apr 11) as he confronted critics of his offshore dealings for the first time in parliament.
Cameron this weekend became the first British leader to publish his tax returns after admitting he held shares in his late father's Bahamas-based investment fund, which he sold before he took office in 2010.
"I didn't want anyone to be able to suggest that as prime minister I had any other agendas or vested interests," he told the House of Commons in his first appearance since the Panama Papers put his finances in the spotlight.
Cameron used his statement to announce a new crackdown on tax avoidance and a new agreement with the British Virgin Islands and other tax havens to share information with British law enforcement and tax authorities.
"There's no doubt that in some of these jurisdictions and countries there are some very bad things happening ... and that's why we want our authorities to go through everything they can," the prime minister said.
While not illegal, Cameron's offshore dealings risk undermining his efforts to lead international action against tax evasion, which will see him host an anti-corruption summit in London in May.
Cameron admitted he had not handled well the revelations about his father's Blairmore fund following the leak of documents by Panamanian law firm Mossack Fonseca.
But he rejected the "deeply hurtful and profoundly untrue" suggestion that his father was trying to avoid tax, saying it was a legitimate business to trade in dollar-denominated securities.
And while it was right to "tighten the law and change the culture" to crack down on evasion and aggressive avoidance", Cameron said the government should "defend the right of every British citizen to make money lawfully". He added: "Aspiration and wealth creation are not somehow dirty words.""
Besides this news report, I happened to be watching the live parliamentary debate on this issue on the BBC and the number of MPs speaking and the type of sharp questions asked of the PM are most remarkable. It would be heresy to even suggest that could happen in Singapore's parliament!
Lessons for me are:
1. indeed, making money and creating wealth SHOULD NEVER BE frown upon as long as they are made legitimately;
2. at the same time, to be able to pay tax would mean that one has done quite well against those non-tax paying citizens and residents. As to how much tax will it become a dis-incentive for people to work hard and smart, it is anyone's guess. The most probable estimate would be: is the rate perceived to be 'fair' by the potential 'tax avoidance' crowd instead of being a 'tax evasion' category!;
3. the British parliamentary system is fascinating to me with this debate. One of the MPs was 'asked to leave the Chamber' as he refused flatly to retract the remarks: 'Dodgy Dave' to describe PM David Cameron. All very civil as he was 'sacked' from the rest of the Parliamentary section!!
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