Tories must come clean on tax

North West Hampshire’s MP Sir George Young has let the cat out of the bag about the tax status of the Tory party’s biggest donor, Lord Ashcroft. For months debate has raged over whether Ashcroft actually lives in the UK and pays tax, or is a “non-dom” - not domiciled in the UK for tax purposes. If he doesn’t pay tax then he is barred from funding the Tory party and the millions he has poured into their campaigns would have to be repaid.

When quizzed about this on BBC’s Newsnight Sir George said “He is in the same position as a number of Labour peers who are non-domiciled and who fund the Labour party.” In other words he doesn’t pay the full rate of UK tax.

The Conservatives, who have previously opposed changes to the law which would have forced parliamentarians to end their status as non-doms, are now desperately trying to play down the fresh confusion over Ashcroft. Meanwhile Ashcroft’s company Bearcroft Corporate Services is under investigation by the Electoral Commission following complaints that he has used it to circumvent the rules on funding political parties.

Lib Dem parliamentary candidate Tom McCann commented “Ashcroft’s dubious tax position must be clarified. Ten years ago, when he was given a peerage, he promised to come clean and pay tax. He still hasn’t done so and he and the Tory party are hiding his true status. This makes a mockery of David Cameron’s claim to be a reformer in favour of cleaning up politics.”

Hear for yourself what Sir George said at http://news.bbc.co.uk/1/hi/programmes/newsnight/8506284.stm

And read more of the story at
http://www.guardian.co.uk/politics/2010/feb/09/lord-ashcroft-conservatives-tax