Rishi Sunak has been listed as a beneficiary of tax haven trusts while setting taxes in the UK as chancellor of the exchequer, according to documents seen by The Independent.
Trusts in the British Virgin Islands and Cayman Islands, created to help manage the tax and business affairs of his wife Akshata Murty’s family interests, note Mr Sunak as a beneficiary in 2020, according to people familiar with Ms Murty’s financial affairs and evidence reviewed by this publication. Mr Sunak became chancellor in February that year, and had previously been chief secretary to the Treasury since 2019.
Documents seen by The Independent show trusts linked to Ms Murty, her family and companies linked to their businesses. In a number of them, Mr Sunak was listed as a beneficiary.
Pat McFadden, Labour’s shadow chief Treasury secretary, said Mr Sunak being listed as a beneficiary of tax haven trusts is “extremely serious” and called for answers.
He said: “We need urgent answers from the chancellor as to why he has been linked to a tax haven. We need full transparency about this and the other stories about the chancellor emerging over the past 24 hours.”
Questions about Mr Sunak’s financial arrangements have come to the fore since The Independent revealed on Wednesday that Ms Murty had non-dom status, meaning she is not obligated to pay UK tax on foreign earnings. Sources also claim that Ms Murty, whose family business is worth £3.5bn, had created a trust which would perpetuate some of these benefits of non-dom status beyond the 15-year limit.
In a U-turn on Friday, Ms Murty announced she will now pay UK taxes on all her worldwide income, saying she did not want her financial arrangements to be a “distraction” for her husband in his role as chancellor.
A spokesperson for Mr Sunak said they “did not recognise” the claims on use of tax havens, while a spokesperson for Ms Murty declined to comment. They previously claimed that she was a non-dom as a result of being an Indian citizen, though experts pointed out that use of the tax status was her choice.
On Friday, Mr Sunak admitted he had also held a US green card while living in Downing Street. Green card holders must pay tax in America and declare their intention to make the US their permanent home.
A spokesperson for the chancellor said he had used his green card for travel purposes until October 2021 on his first US trip in a government capacity, at which point he returned it after discussion with authorities. They added: “Rishi Sunak followed all guidance and continued to file US tax returns, but specifically as a non-resident, in full compliance with the law. All laws and rules have been followed and full taxes have been paid where required in the duration he held his green card.”
Last year she collected dividends of £11.5m from her estimated £700m stake in Infosys, the IT firm set up by her father, potentially saving around £4.5m in UK taxes through her non-dom status. She has previously stated that she “has always and will continue to pay UK taxes on all her UK income”.
It comes as Mr Sunak’s popularity with voters has sunk to an all-time low, according to polls, as increases in inflation and national insurance contributions (NICs), as well as energy bills, spark a cost-of-living crisis. Mr Sunak’s spring statement last month was criticised for not doing enough to help the worst off.
Sir Keir Starmer has accused Mr Sunak was guilty of “breathtaking hypocrisy” for raising taxes while his wife benefits from non-dom status. The Labour party, the Lib Dems and the SNP have all urged the chancellor to give further details of their financial affairs, and the extent to which he may benefit personally.
While the Treasury has said that Mr Sunak declared his wife’s tax status when he became a minister in 2018 and again when he joined the department, officials told The Independent they had not been informed, and felt “uncomfortable” about the implications. The Treasury and Cabinet Office did not respond to requests for comment concerning Mr Sunak’s alleged beneficiary status in the British Virgin or Cayman islands trusts.
Tax havens have no – or minimal – taxes on companies and other corporate structures and entities. They also often offer a high degree of financial secrecy often when companies are registered there, or trusts are created as beneficiaries of companies within their jurisdiction. Their use by British residents is entirely legal.
Ms Murty may be making use of a loophole left after the tightening of non-dom status by then chancellor George Osborne in 2015. By creating a trust as a non-dom, that entity can continue to have non-dom status even if its beneficiaries are no longer able to choose to use the option for tax benefits. The rules allowing this were brought into effect on 6 April 2017, and there is no suggestion of legal wrongdoing in this or her use of non-dom status.
People with this kind of wealth shouldn’t be in jobs which dictates how working class people live. Has any of them ever struggled to pay a single bill or known what poverty feels like?
It just doesn’t end.
This is the person who has bemoaned the countries finances and how there is a hole in funding. All the while dodging paying his fair share.
Why are tax havens legal?
It seems to me their only purpose is to evade tax.
We’re all in it together, unless you’re a Tory, in which case the country is your personal piggy bank and you choose whether to pay tax here or follow laws. Still, Con + 4, they’re doing their best! (hint: they’re not, they’re laughing at us)
The knives are out for Sunak right now (probably Team Johnson trying to distract from partygate) but you have to remember one thing:
* They are all the same
Sunak may be all over the press right now, but that doesn’t mean any of the others are good. They’re all cut from the same cloth and totally out of touch with reality on the ground.
Considering this is all coming from the Independent, would it be right to guess Lord Lebedev is doing Boris a favour?
He’s far and away the richest MP, is anyone actually surprised by any of this?
Millionaires should never be in charge of governing finance for the common folk.
Also didn’t former finance minister George Osborne also have a tax heaven based company? Tories gonna Tory..
At which point, these days, do things become a resigning matter?!
The worst thing about all this is that Sunak has been able to be a complete greedy shit and none of it is illegal. He’s not going to be punished. All that’s going to happen is his ego won’t get the kick of being Prime Minister and he’ll fly off to Santa Monica and make more in a year than most of us will make in a lifetime.
Nothing will happen, this government as covered in sleaze, this is only another blip on the radar sadly.
tories and all their voters are nothing but traitors that need throwing into labour camps
Boris and the Lord of Siberia have done a number on this lad.
Shouldn’t elected officials be separated from their investments. If you are wealthy, shouldn’t serving the people be compensation enough?
I mean, if you are connected enough to get the job, surely your friends or advisors could manage your wealth without compromising your constituents?
American here, the irony is lost on us.
He was almost popular for a minute there. All gone wrong now.
Man in charge of tax, avoids paying it. We’re all in it together. Fuck that guy!
His only loyalty is to the globalised billionaire class. Kick him out. Typical traitor Tory.
Look don’t blame him, avoiding tax is sensible.
Blame those responsible for not closing these loop holes.
-Tories
This is only the stuff we know about. Not even the tip of the iceberg. Tory sleaze exists as oozes from every Tory party cretin. Yet we have people who have to choose between freezing to death and starving to death.
And this Tory gov’t have been robbing our OAPs.
Nothing surprises me anymore.
Just makes me think that most people with some kind of power are doing shady shit behind the scenes. Almost as if that’s what it takes to get there…
In a more reasonable time, he would have resigned already.
>The Tory MP whose work for a tax haven sparked a sleaze scandal argued in parliament against measures to close money laundering loopholes, it can be revealed.
Geoffrey Cox earned nearly £1 million from his second job representing the British Virgin Islands (BVI) in a corruption and money laundering inquiry set up by his own Conservative colleagues in the UK government.
But in a 2018 parliamentary debate on the Sanctions and Anti-Money Laundering Bill Sir Geoffrey said it was “beneath the dignity of this parliament” to try and close loopholes being exploited by territories like the BVI.
The Conservative MP argued that British overseas territories had been given “responsibility for the governance of **their** financial and economic affairs” and that the UK should not interfere.
The revelations raise questions as in 2018 Sir Geoffrey did hundreds of hours of legal work for unknown clients, including through firms based in the Cayman Islands itself.
So who’s left? Cheese Liz and that bloated corpse looking one? I really hope we don’t get a leadership contest, it’s actually better if Alexander Johnson just keeps fucking up until the next GA
Democracy, I always thought that it was something that was based on the majority vote but when the final decision is made by a single person democracy falls apart. Johnson has overruled so many decisions by his own party shows that democracy does not exist. I have always wondered why wealthy people become MP’s, is it possible that it’s just a game to them?
Im really looking forward to when the same level of investigate journalism is applied to politicians who are not front runners for the big job.
This is the ruling class. Couldn’t give a monkey’s toss about our plights their nests have been feathered years ago. Trouble is there is so many people who think this is totally ok, that see tax as a punishment on the rich and would do exactly the same if they had this kind of money. The buggers will get in again as the next election will be fought on the trans rights issue. And these lot will be ducking and swerving and hiding away from all these issues.
Quick Cheat Sheet for the status of various tax havens:
**The Crown Dependencies**:
Isle of Mann, The Bailiwick of Guernsey, The Bailiwick of Jersey
The Crown Dependencies dont have a real connection to the UK Government as such, their connection is to “The Crown” itself as the monarch is also “The Duke of Normandy” and “The Lord Mann”, and not subject to the UK Parliament. The decisions of “The Crown” however are by the advice of the “Privy Council” which is mostly composed of members of the UK Parliament, which means that technically this subset of Parliament gets to tell the Queen to tell them what to do. They are not internationally recognised as separate states, and can only enter into any international treaties with approval from the UK, this in particular includes tax treaties. Since 2007 we’ve agreed to not do anything without consulting with them (this however has no real force).
**TL;DR** we could legally force them to change their Tax Laws via the power of The Crown, but we dont want to.
**British Overseas Territories**:
Anguilla, Bermuda, British Antarctic Territory, British Indian Ocean Territory, British Virgin Islands, Cayman Islands, Falkland Islands, Gibraltar, Montserrat, Pitcairn, Henderson, Ducie and Oeno, Saint Helena, Ascension Island, Tristan da Cunha, South Georgia, South Sandwich Islands, Akrotiri and Dhekelia, Turks, Caicos Islands.
These are somewhat different in that they have a relationship with the UK State rather than simply The Crown. That means while we choose not to do so, the UK Parliament has in fact got unlimited legislative power over these locations. So, parliament as a whole can enact rules regarding them.
**TL;DR** we could legally force them to change their tax policies via the powers of parliament, but we dont want to.
In the case of both categories, we deal with all international affairs, and defence and in most cases provide them with financial support as well.
28 comments
Article contents:
Rishi Sunak has been listed as a beneficiary of tax haven trusts while setting taxes in the UK as chancellor of the exchequer, according to documents seen by The Independent.
Trusts in the British Virgin Islands and Cayman Islands, created to help manage the tax and business affairs of his wife Akshata Murty’s family interests, note Mr Sunak as a beneficiary in 2020, according to people familiar with Ms Murty’s financial affairs and evidence reviewed by this publication. Mr Sunak became chancellor in February that year, and had previously been chief secretary to the Treasury since 2019.
Documents seen by The Independent show trusts linked to Ms Murty, her family and companies linked to their businesses. In a number of them, Mr Sunak was listed as a beneficiary.
Pat McFadden, Labour’s shadow chief Treasury secretary, said Mr Sunak being listed as a beneficiary of tax haven trusts is “extremely serious” and called for answers.
He said: “We need urgent answers from the chancellor as to why he has been linked to a tax haven. We need full transparency about this and the other stories about the chancellor emerging over the past 24 hours.”
Questions about Mr Sunak’s financial arrangements have come to the fore since The Independent revealed on Wednesday that Ms Murty had non-dom status, meaning she is not obligated to pay UK tax on foreign earnings. Sources also claim that Ms Murty, whose family business is worth £3.5bn, had created a trust which would perpetuate some of these benefits of non-dom status beyond the 15-year limit.
In a U-turn on Friday, Ms Murty announced she will now pay UK taxes on all her worldwide income, saying she did not want her financial arrangements to be a “distraction” for her husband in his role as chancellor.
A spokesperson for Mr Sunak said they “did not recognise” the claims on use of tax havens, while a spokesperson for Ms Murty declined to comment. They previously claimed that she was a non-dom as a result of being an Indian citizen, though experts pointed out that use of the tax status was her choice.
On Friday, Mr Sunak admitted he had also held a US green card while living in Downing Street. Green card holders must pay tax in America and declare their intention to make the US their permanent home.
A spokesperson for the chancellor said he had used his green card for travel purposes until October 2021 on his first US trip in a government capacity, at which point he returned it after discussion with authorities. They added: “Rishi Sunak followed all guidance and continued to file US tax returns, but specifically as a non-resident, in full compliance with the law. All laws and rules have been followed and full taxes have been paid where required in the duration he held his green card.”
Last year she collected dividends of £11.5m from her estimated £700m stake in Infosys, the IT firm set up by her father, potentially saving around £4.5m in UK taxes through her non-dom status. She has previously stated that she “has always and will continue to pay UK taxes on all her UK income”.
It comes as Mr Sunak’s popularity with voters has sunk to an all-time low, according to polls, as increases in inflation and national insurance contributions (NICs), as well as energy bills, spark a cost-of-living crisis. Mr Sunak’s spring statement last month was criticised for not doing enough to help the worst off.
Sir Keir Starmer has accused Mr Sunak was guilty of “breathtaking hypocrisy” for raising taxes while his wife benefits from non-dom status. The Labour party, the Lib Dems and the SNP have all urged the chancellor to give further details of their financial affairs, and the extent to which he may benefit personally.
While the Treasury has said that Mr Sunak declared his wife’s tax status when he became a minister in 2018 and again when he joined the department, officials told The Independent they had not been informed, and felt “uncomfortable” about the implications. The Treasury and Cabinet Office did not respond to requests for comment concerning Mr Sunak’s alleged beneficiary status in the British Virgin or Cayman islands trusts.
Tax havens have no – or minimal – taxes on companies and other corporate structures and entities. They also often offer a high degree of financial secrecy often when companies are registered there, or trusts are created as beneficiaries of companies within their jurisdiction. Their use by British residents is entirely legal.
Ms Murty may be making use of a loophole left after the tightening of non-dom status by then chancellor George Osborne in 2015. By creating a trust as a non-dom, that entity can continue to have non-dom status even if its beneficiaries are no longer able to choose to use the option for tax benefits. The rules allowing this were brought into effect on 6 April 2017, and there is no suggestion of legal wrongdoing in this or her use of non-dom status.
People with this kind of wealth shouldn’t be in jobs which dictates how working class people live. Has any of them ever struggled to pay a single bill or known what poverty feels like?
It just doesn’t end.
This is the person who has bemoaned the countries finances and how there is a hole in funding. All the while dodging paying his fair share.
Why are tax havens legal?
It seems to me their only purpose is to evade tax.
We’re all in it together, unless you’re a Tory, in which case the country is your personal piggy bank and you choose whether to pay tax here or follow laws. Still, Con + 4, they’re doing their best! (hint: they’re not, they’re laughing at us)
The knives are out for Sunak right now (probably Team Johnson trying to distract from partygate) but you have to remember one thing:
* They are all the same
Sunak may be all over the press right now, but that doesn’t mean any of the others are good. They’re all cut from the same cloth and totally out of touch with reality on the ground.
Considering this is all coming from the Independent, would it be right to guess Lord Lebedev is doing Boris a favour?
He’s far and away the richest MP, is anyone actually surprised by any of this?
Millionaires should never be in charge of governing finance for the common folk.
Also didn’t former finance minister George Osborne also have a tax heaven based company? Tories gonna Tory..
At which point, these days, do things become a resigning matter?!
The worst thing about all this is that Sunak has been able to be a complete greedy shit and none of it is illegal. He’s not going to be punished. All that’s going to happen is his ego won’t get the kick of being Prime Minister and he’ll fly off to Santa Monica and make more in a year than most of us will make in a lifetime.
Nothing will happen, this government as covered in sleaze, this is only another blip on the radar sadly.
tories and all their voters are nothing but traitors that need throwing into labour camps
Boris and the Lord of Siberia have done a number on this lad.
Shouldn’t elected officials be separated from their investments. If you are wealthy, shouldn’t serving the people be compensation enough?
I mean, if you are connected enough to get the job, surely your friends or advisors could manage your wealth without compromising your constituents?
American here, the irony is lost on us.
He was almost popular for a minute there. All gone wrong now.
Man in charge of tax, avoids paying it. We’re all in it together. Fuck that guy!
His only loyalty is to the globalised billionaire class. Kick him out. Typical traitor Tory.
Look don’t blame him, avoiding tax is sensible.
Blame those responsible for not closing these loop holes.
-Tories
This is only the stuff we know about. Not even the tip of the iceberg. Tory sleaze exists as oozes from every Tory party cretin. Yet we have people who have to choose between freezing to death and starving to death.
And this Tory gov’t have been robbing our OAPs.
Nothing surprises me anymore.
Just makes me think that most people with some kind of power are doing shady shit behind the scenes. Almost as if that’s what it takes to get there…
In a more reasonable time, he would have resigned already.
Literally can’t make this up:
[https://www.independent.co.uk/news/uk/politics/geoffrey-cox-british-virgin-islands-tax-laundering-b1955041.html](https://www.independent.co.uk/news/uk/politics/geoffrey-cox-british-virgin-islands-tax-laundering-b1955041.html)
>The Tory MP whose work for a tax haven sparked a sleaze scandal argued in parliament against measures to close money laundering loopholes, it can be revealed.
Geoffrey Cox earned nearly £1 million from his second job representing the British Virgin Islands (BVI) in a corruption and money laundering inquiry set up by his own Conservative colleagues in the UK government.
But in a 2018 parliamentary debate on the Sanctions and Anti-Money Laundering Bill Sir Geoffrey said it was “beneath the dignity of this parliament” to try and close loopholes being exploited by territories like the BVI.
The Conservative MP argued that British overseas territories had been given “responsibility for the governance of **their** financial and economic affairs” and that the UK should not interfere.
The revelations raise questions as in 2018 Sir Geoffrey did hundreds of hours of legal work for unknown clients, including through firms based in the Cayman Islands itself.
[JUST LOOK AT HIM](https://static.independent.co.uk/2021/11/10/09/newFile-6.jpg?quality=75&width=990&auto=webp&crop=982:726,smart)
So who’s left? Cheese Liz and that bloated corpse looking one? I really hope we don’t get a leadership contest, it’s actually better if Alexander Johnson just keeps fucking up until the next GA
Democracy, I always thought that it was something that was based on the majority vote but when the final decision is made by a single person democracy falls apart. Johnson has overruled so many decisions by his own party shows that democracy does not exist. I have always wondered why wealthy people become MP’s, is it possible that it’s just a game to them?
Im really looking forward to when the same level of investigate journalism is applied to politicians who are not front runners for the big job.
This is the ruling class. Couldn’t give a monkey’s toss about our plights their nests have been feathered years ago. Trouble is there is so many people who think this is totally ok, that see tax as a punishment on the rich and would do exactly the same if they had this kind of money. The buggers will get in again as the next election will be fought on the trans rights issue. And these lot will be ducking and swerving and hiding away from all these issues.
Quick Cheat Sheet for the status of various tax havens:
**The Crown Dependencies**:
Isle of Mann, The Bailiwick of Guernsey, The Bailiwick of Jersey
The Crown Dependencies dont have a real connection to the UK Government as such, their connection is to “The Crown” itself as the monarch is also “The Duke of Normandy” and “The Lord Mann”, and not subject to the UK Parliament. The decisions of “The Crown” however are by the advice of the “Privy Council” which is mostly composed of members of the UK Parliament, which means that technically this subset of Parliament gets to tell the Queen to tell them what to do. They are not internationally recognised as separate states, and can only enter into any international treaties with approval from the UK, this in particular includes tax treaties. Since 2007 we’ve agreed to not do anything without consulting with them (this however has no real force).
**TL;DR** we could legally force them to change their Tax Laws via the power of The Crown, but we dont want to.
**British Overseas Territories**:
Anguilla, Bermuda, British Antarctic Territory, British Indian Ocean Territory, British Virgin Islands, Cayman Islands, Falkland Islands, Gibraltar, Montserrat, Pitcairn, Henderson, Ducie and Oeno, Saint Helena, Ascension Island, Tristan da Cunha, South Georgia, South Sandwich Islands, Akrotiri and Dhekelia, Turks, Caicos Islands.
These are somewhat different in that they have a relationship with the UK State rather than simply The Crown. That means while we choose not to do so, the UK Parliament has in fact got unlimited legislative power over these locations. So, parliament as a whole can enact rules regarding them.
**TL;DR** we could legally force them to change their tax policies via the powers of parliament, but we dont want to.
In the case of both categories, we deal with all international affairs, and defence and in most cases provide them with financial support as well.