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The PalArse of Westminster

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Exposing the hypocrisy, greed and incompetence of our "respected" elected political "elite".

Thursday 29 March 2012

Tory Tax Avoidance Hypocrisy



Last week in his Budget statement, George Osborne said:
I regard tax avoidance and, indeed, aggressive tax avoidance as incredibly repugnant.”
For good measure he added that the Government would come down “like a ton of bricks” on those who seek to avoid stamp duty.

Step forward Andrew Mitchell, the International Development Secretary, who invested funds in DV3 Ltd a network of privately owned firms which is now at the centre of a tax avoidance case.

One of the subsidiaries of DV3 Ltd purchased the lease on the Dickins & Jones department store building in central London in October 2006 for £65.1M.

A month later, the subsidiary sold the lease to a partnership, also controlled by DV3, for £65,100. The company maintained stamp duty was calculated on the lesser amount, reducing the rate from 4% to zero.

HMRC challenged the transaction alleging it was a case of “aggressive tax avoidance” but lost at a tax tribunal in February 2011.

It is appealing the decision.

Taxes are, after all, only for "little people" and pasty eaters!

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