Queen’s offshore links: Is it moral?

LONDON : Questions were raised after the Paradise Papers revealed that millions of pounds of Queen Elizabeth’s private money was invested offshore, with opposition Labour leaders questioning if the investments were moral, even if legitimate.

Calls for a clean-up of the tax system came to the fore again, with some despairing that questions raised by the previous Panama Papers scandal had not led to action.

Several tax havens are British Overseas Territories or Crown Dependencies.

The Queen’s funds were invested offshore by the Duchy of Lancaster, a private estate intended to generate a return for the reigning monarch. It was set up in 1399 and manages land and investments held in trust for the Queen, who also holds the title of the Duke of Lancaster.

There was no official word from Buckingham Palace, but the Duchy of Lancaster said all investments were legitimate, and that the Queen pays the equivalent of income tax on her private income.

The scale of the latest revelations led Labour Party leaders to claim Britain need not have gone through seven years of austerity if the super-rich had paid their taxes in the country, instead of parking their wealth offshore.

The Paradise Papers mostly comprise documents from a law firm in Bermuda, whose premier, David Burt, tossed the ball in London’s court, saying the British Overseas Territory had a “robust regulatory regime”. It has had the same tax system since 1898, he said, and claimed Britain’s tax law allowed the use of offshore tax havens.

Burt said: “Bermuda cannot make a change to its laws to address the challenge of what you are looking at, what you are discussing is the United Kingdom law. There is nothing that has been found that is illegal or contrary to law.”

Shadow chancellor John Mcdonnell said he was “pretty shocked” at the revelations but not surprised, and called for a full public inquiry and much greater scrutiny.