Labour demands HMRC investigation into ministers’ tax affairs

Labour is demanding an investigation by HM Revenue and Customs to clear up whether any government minister with responsibility for tax policy has ever benefitted from undeclared tax arrangements as a result.

The call comes after The Independent revealed the non-dom tax status enjoyed by chancellor Rishi Sunak’s wife Akshata Murty, as well as questions over health secretary Sajid Javid’s use of an offshore trust while working as a Treasury adviser.

In response to queries from The Independent, just five out of 22 cabinet ministers were prepared to confirm publicly that they and their families do not benefit from the use of tax havens or non-dom status.

In a letter to HMRC, seen by The Independent, Labour Treasury spokesperson James Murray called for an investigation to provide “full clarity that no sitting government minister who has been involved in any way with shaping tax policy has benefitted from those policies through personal and previously undeclared tax arrangements linked to offshore tax havens”.

And he asked for reassurance that steps would be taken to ensure that no ministers with such links are involved in future decisions on tax policies in these areas – and that Mr Sunak would recuse himself until questions over his own links to tax havens have been resolved.

The Treasury has said that it “does not recognise” reports that Mr Sunak was listed as a beneficiary of trusts linked to his wife’s family located in the tax havens British Virgin Islands and Cayman Islands in 2020.

And Ms Murty gave up her non-dom status after it became public knowledge, hitting her husband’s status as leading contender to succeed Boris Johnson as prime minister.

Among a list of eight questions to HMRC, Mr Murray demanded to known whether the chancellor has ever benefitted from the use of tax havens – including before his time in parliament – and whether any of the investments in the blind trust he set up when appointed a minister are held offshore.

He asked for a list of ministers who have used tax havens to manage their affairs or non-dom status to minimise tax bills.

“These questions are of critical public interest,” wrote the Labour frontbencher. “Not only to make sure basic standards of transparency are met, but also because our country is in the grips of an escalating cost of living crisis.

“In the midst of this crisis, millions of working people and businesses are seeing their tax burden rise. As they pay more tax because of ministers’ decisions, it is right that they should know whether or not minister have been using offshore tax havens to reduce their personal tax bills.

“While it should be obvious, given recent stories of links to tax havens and loopholes from the chancellor and health secretary, taxpayers need to be reassured that ministers are in no way influencing tax policy for their own personal gain. We need an urgent investigation now.”