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| Tory donor Lord Fink admits 'vanilla' tax avoidance but says it's ok because 'everyone does it at some level' | Tory donor Lord Fink admits 'vanilla' tax avoidance but says it's ok because 'everyone does it at some level' |
| (about 2 hours later) | |
| Lord Fink, the former Conservative treasurer, has conceded that he had taken “vanilla, bland” steps to reduce his tax bill, adding that “everyone” is involved in tax avoidance. | Lord Fink, the former Conservative treasurer, has conceded that he had taken “vanilla, bland” steps to reduce his tax bill, adding that “everyone” is involved in tax avoidance. |
| His admission came after he threatened Ed Miliband with legal action if he repeated a claim that the Tory peer and major party donor had been involved in “tax avoidance activities”. | His admission came after he threatened Ed Miliband with legal action if he repeated a claim that the Tory peer and major party donor had been involved in “tax avoidance activities”. |
| The Labour leader went on to describe David Cameron as “a dodgy Prime Minister surrounded by dodgy donors”. | The Labour leader went on to describe David Cameron as “a dodgy Prime Minister surrounded by dodgy donors”. |
| Lord Fink said his tax planning had been at the “vanilla” or “mild” end of the spectrum and he had rejected advice to take more “aggressive” action to cut his tax bill. | Lord Fink said his tax planning had been at the “vanilla” or “mild” end of the spectrum and he had rejected advice to take more “aggressive” action to cut his tax bill. |
| “I chose the mildest end of the spectrum that I was advised on,” he told the Evening Standard. “What I did… was at the vanilla, bland, end of the spectrum.” | “I chose the mildest end of the spectrum that I was advised on,” he told the Evening Standard. “What I did… was at the vanilla, bland, end of the spectrum.” |
| Lord Fink said: “I didn’t object to his use of the word ‘tax avoidance’. Because you are right: tax avoidance, everyone does it.” | Lord Fink said: “I didn’t object to his use of the word ‘tax avoidance’. Because you are right: tax avoidance, everyone does it.” |
| He said: “I don’t even want to sue Ed Miliband... If he simply uses the words ‘Lord Fink did ordinary tax avoidance’ then, no, I couldn’t sue him. | He said: “I don’t even want to sue Ed Miliband... If he simply uses the words ‘Lord Fink did ordinary tax avoidance’ then, no, I couldn’t sue him. |
| “But if he made the statement ‘dodgy’ about my bank account, that was potentially libellous. That was the issue I took exception to.” | “But if he made the statement ‘dodgy’ about my bank account, that was potentially libellous. That was the issue I took exception to.” |
| Responding today, Mr Miliband said: “Yesterday a Conservative donor challenged me to stand by what I said in the House of Commons. I do. | Responding today, Mr Miliband said: “Yesterday a Conservative donor challenged me to stand by what I said in the House of Commons. I do. |
| "And believe it or not, now today he confirmed it as well. He has just said, and I quote ‘I didn’t object to his use of the word tax avoidance, because tax avoidance – everyone does it’. | "And believe it or not, now today he confirmed it as well. He has just said, and I quote ‘I didn’t object to his use of the word tax avoidance, because tax avoidance – everyone does it’. |
| "David Cameron must explain why he appointed a treasurer of the Conservative Party who boasts about engaging in tax avoidance and thinks it is something that everyone does.” | |
| However, the Labour leader stopped short of repeating his Commons barb, which was protected by parliamentary privilege, that Mr Cameron was “surrounded by dodgy donors”. | However, the Labour leader stopped short of repeating his Commons barb, which was protected by parliamentary privilege, that Mr Cameron was “surrounded by dodgy donors”. |
| Lord Fink reacted: “Yesterday I challenged Ed Miliband to repeat the accusations he made in the Commons - that I used an HSBC bank account to avoid tax and that I was a ‘dodgy donor’. He did not. | Lord Fink reacted: “Yesterday I challenged Ed Miliband to repeat the accusations he made in the Commons - that I used an HSBC bank account to avoid tax and that I was a ‘dodgy donor’. He did not. |
| “This is a major climbdown by a man who is willing to smear without getting his facts straight.” | “This is a major climbdown by a man who is willing to smear without getting his facts straight.” |
| Patrick Stevens, the tax policy director at the Chartered Institute of Taxation, told The Independent that while “tax planning” is generally understood as meaning taking steps to reduce the amount of tax paid in a way that the law allows and is intended for, “tax avoidance” - though legal - involves “getting a result that the law did not intend”. | Patrick Stevens, the tax policy director at the Chartered Institute of Taxation, told The Independent that while “tax planning” is generally understood as meaning taking steps to reduce the amount of tax paid in a way that the law allows and is intended for, “tax avoidance” - though legal - involves “getting a result that the law did not intend”. |
| “Not everyone does tax avoidance,” he said. “Each person decides whether they are comfortable doing transactions intended to get a result that was not intended.” | “Not everyone does tax avoidance,” he said. “Each person decides whether they are comfortable doing transactions intended to get a result that was not intended.” |
| But Mr Stevens did concede that “most people would do something specifically allowed by law if it improved their tax position”. | But Mr Stevens did concede that “most people would do something specifically allowed by law if it improved their tax position”. |