Now Labour faces quiz over donors’ tax affairs
ED MILIBAND was facing mounting embarrassment in the tax- dodge row yesterday as it emerged two wealthy Labour donors are facing questions over their financial affairs.
Property tycoon Sir David Garrard, who gave the party £ 690,000 last year, placed shares in an offshore trust that can be used to avoid tax, it was claimed.
It was also revealed yesterday that green energy tycoon Dale Vince, who last week promised Labour £ 250,000, gave himself a £ 3.2million interest- free loan from his company. If he used it as a replacement for a salary, he could have, legally, reduced his income tax bill.
Now the Tories are accusing Labour of double standards after Labour leader Mr Miliband attacked Tory donor Lord Fink for reducing his liabilities.
Tory MP Andrew Bridgen said Mr Miliband’s “hypocrisy” was “absolutely breathtaking”. Tory chairman Grant Shapps added: “Labour say one thing on tax avoidance but do another.”
Lawyers acting for Sir David, 75, said all the transactions were fully declared to the UK tax authorities.
In a further embarrassment, Ed Balls said yesterday that he might close a tax loophole used by Mr Miliband after insisting he would crack down on “aggressive tax avoidance”.
The shadow chancellor failed to back the leader over his family’s use of a “deed of variation”, which changed his father’s will posthumously to minimise inheritance tax.
Referring to a 2013 donation of £ 1.6million worth of shares, rather than cash, by businessman John Mills, Mr Balls said it had been “tax efficient” for the party but did not cut the donor’s own tax bill.
“I’m afraid it is small beer compared to what the Tories are up to,” he added.