They think it is all over it is not

A front page article in the Sunday Times reveals that "Blair tycoon paid just £5000 in tax". Referring to Lord Levy who was ennobled by Tony Blair and has now been appointed by Tony Blair as his "personal envoy" to the Middle East.

The article reports that

"Information passed to The Sunday Times last week reveals that Levy was a basic-rate taxpayer who paid about the same to the Inland Revenue in the 1998/99 financial year as someone earning the national average salary of £21,000

The leak came in the wake of a story in last week's paper which revealed how foreign-born Labour donors are cutting their tax bills by exploiting a £10 billion loophole through which they can claim not to be domiciled in the UK for tax purposes despite having lived and voted here for decades."

The Sunday Times quotes Mike Warburton, senior tax partner with accountants Grant Thornton: "People with this much wealth often invest with people like me to avoid tax but to get it down to the basic rate is quite extraordinary.

"It is possible but would involve extremely careful and sophisticated planning."

Contractors will recall Dawn Primarolo stating in the House of Commons:

"IR35 deals with avoidance in cases in which one employee in a company avoids tax and national insurance. That means that such employees do not pay tax and national insurance, which are paid by other people who are self-employed or on pay-as-you-earn pay. The hon. Gentleman (Dr Cable) should explain why he is prepared to support a group of workers whose companies their own advisers describe as tax havens. Why should they be allowed to continue to cheat honest taxpayers

I can see a series of Questions in the HoC for Ms Primarolo

Considering her views on Contractors would she agree that the latest news about Lord Levy should attract a similar response from the person responsible for collecting the Nation's taxes?

If she cannot comment on Lord Levy in the same manner, should she not apologise to the thousands of hardworking, honest people she has insulted by calling them tax cheats. They pay their taxes and want nothing more than their chance to make their way in the world as Lord Levy has done.

Would she also not agree that it cannot be right for a person such as Lord Levy to be "sitting alongside" other Civil Servants, carrying out similar duties under the supervision, direction and control of the Prime Minister and yet only pay £5,000 in tax.

Is this not another example of how there is one rule for the chosen few and another for the electorate, the majority of whom voted your Government into power.

Considering that this is a £10 billion "loophole" should the Paymaster General not have concentrated on closing this loophole rather than expend Revenue resources and mismanage a "consultation" exercise with regards to a measure that will raise only a twentieth of this amount.

In view of this will the Paymaster General resign?

But then I am not a Politician. You may care to suggest these and other questions, when you write to your MP enclosing your OFT submission.

Sunday Times article