Cameron toughens tax laws in wake of scandal

The Prime Minister will announce plans to ensure that firms that aid tax evasion will be held criminally responsible for the actions of their staff under legislation to be introduced in Parliament this year.

He will face questions from MPs today for the first time after the row over his personal finances. The Prime Minister will make a statement on the Commons steps to investigate the Panama Papers revelations.

In an attempt to be transparent about his own finances, Mr Cameron took the unprecedented step of publishing details of his tax returns, but Labour leader Jeremy Corbyn insisted Mr Cameron still had “big questions” to answer about an investment in an offshore trust set up by his father.

Downing Street also revealed that Mr Cameron had been given a £200,000 gift by his mother following his father’s death, a move which could potentially reduce inheritance tax liabilities.

The disclosure of his tax returns followed the furore over the Panama Papers data leak and the revelation that Mr Cameron and his wife Samantha made a £19,000 profit on shares in an offshore trust set up by his father which were sold in 2010.

The Prime Minister has been angered by the focus on his father’s offshore business interests, insisting it was a “fundamental misconception” that the Blairmore Holdings trust had been set up to avoid tax.

Defence Minister Penny Mordaunt said: “I don’t think it’s damaged his credibility. I think – I don’t have any other insights other than you do, but I don’t think he has done anything wrong.

“I think what this is about is trust. And he has to now demonstrate and build up that trust and rapport with the general public.”

Asked if the Prime Minister had lost her trust, she replied: “I think that this will raise questions ... about politicians publishing further information about themselves, and I think although I understand arguments around privacy and security, if that is what the electorate require of their elected officials, I think that’s what will have to happen.”

Legislation expected to be contained in the Queen’s Speech in May will create the new offence, which will mean that firms will be held criminally liable if they fail to stop their employees from facilitating tax evasion.

Mr Cameron said: “This Government has done more than any other to take action against corruption in all its forms, but we will go further. That is why we will legislate this year to hold companies who fail to stop their employees facilitating tax evasion criminally liable.”

The move comes ahead of an international anti-corruption summit in London and the announcement of a task force to investigate evidence from the Panama Papers data leak.