The Labour party has requested that the prime minister provide answers regarding David Cameron’s tax matters during his employment with the now-defunct lender Greensill Capital.
The Guardian recently uncovered that HMRC is investigating the benefits and payments received by Lord Cameron, the newly appointed foreign secretary, while he was working as a lobbyist for Greensill, a finance company that faced controversy and collapsed in 2021. In response, Pat McFadden, the shadow chancellor of the Duchy of Lancaster, has sent a letter to Rishi Sunak.
The parliamentary inquiry found fault in Cameron’s actions while working for the firm, specifically in his communication with ministers and other contacts from his time in public office. In 2021, he admitted to receiving a much higher salary than his earnings as prime minister.
Given the recent investigation into Cameron’s tax dealings, McFadden urged the prime minister to clarify the steps taken in expediting Cameron’s appointment to the cabinet and House of Lords last week.
McFadden says in a letter seen by the Guardian that Sunak’s promise to lead a government with “integrity, professionalism and accountability at every level” means he should answer a range of questions about Cameron’s sudden return to the cabinet table.
“Prior to his appointment, did you have knowledge of any inquiries or worries regarding the foreign secretary’s tax matters?” McFadden inquires of the prime minister.
According to information obtained by the Guardian, Cameron utilized private planes from Greensill Capital for personal travel between airports near his residences in Oxfordshire and Cornwall.
Authorities are investigating if he accurately reported the total amount of flights, which could be considered taxable benefits, as well as how he received compensation through an offshore trust in Guernsey.
McFadden suggests that Cameron, who has not disclosed the amount he earned during his involvement in a major lobbying scandal, should be more open about his compensation and the taxes associated with it.
In April 2020, David Cameron’s personal company, the Office of David Cameron Ltd, was changed to an unlimited company. This means that there are no public records available after 2019. However, during his testimony to the Treasury select committee, Cameron mentioned that he received a generous annual salary, which was more than what he earned as prime minister. He also disclosed that he had shares in the company, not just share options, which were vested over the duration of his contract. This information was stated in a letter written by McFadden.
The Labour party has inquired about whether the Prime Minister’s office or the Cabinet Office looked into the tax affairs of the foreign secretary, and if there were any concerns raised during the process of appointing him to the House of Lords.
The Labour party has requested information on whether the government plans to launch an inquiry into the issue.
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According to flight records obtained by the Guardian, there were a minimum of 13 trips taken to and from Newquay airport in Cornwall on Greensill’s private plane, believed to have been for the former prime minister’s use. The logs also indicate two flights involving RAF Brize Norton, which are also believed to have been for Cameron’s benefit. Brize Norton is located close to his home in Oxfordshire.
It is believed that the flights taken by Cameron during his employment at Greensill may not have been fully disclosed. These flights could be considered as a form of benefit, but it is possible that the employer did not pay the necessary national insurance contributions and Cameron may not have paid all of his personal taxes, according to sources.
Sources have stated that there are potential additional taxes that need to be addressed. According to reports, Cameron received payment for his work at Greensill through an employee benefit trust located in Guernsey, known as a tax haven in the Channel Islands. It appears that Lex Greensill, the founder of the company, used this trust to provide Cameron with added benefits. This may have resulted in Cameron being subject to UK income tax on the reported £7 million in salary and shares received through the trust, rather than the lower capital gains tax rate. Sources have estimated the value of this trust at £20 million before the company’s collapse.
A representative for Cameron stated that according to David Cameron’s testimony to the Treasury select committee in May 2021, he did utilize Greensill’s private jet for personal trips, all of which were short-distance flights. Any financial gain from this was appropriately taxed. Additionally, all income earned from Greensill was reported to HMRC and the corresponding taxes were paid in full.
An HMRC spokesperson stated: “We are unable to provide information about specific taxpayers.”
The spokesperson for Sunak stated that when Cameron was appointed as foreign secretary, all standard procedures were followed. This included following the protocols of the House of Lords Appointments Commission, which usually involves coordinating with HMRC and other government departments to address any potential issues.
Source: theguardian.com
