Cameron wants top MPs to publish tax affairs

Yet those in charge of the nation’s economy and those with an eye on future leadership should be prepared to put their affairs into the public domain.

Facing the House of Commons for the first time since the Mossack Fonseca data leak, the Prime Minister indicated that it was important that those at the very top of the political elite do not leave themselves open to speculation.

Nursing the fall-out of his admission that he once held £30,000 worth of shares in his father’s off-shore company Blairmore Holdings, Mr Cameron said that he had not responded quick enough to the media furore around his finances.

He said: “I accept all of the criticisms for not responding more quickly to these issues last week but as I said I was angry about the way my father’s memory was being traduced.

“I know he was a hard-working man and a wonderful dad and I’m proud of everything he did to build a business and provide for his family.”

Millions of documents from the Panama based law firm Massack Fonseca revealed a week ago that the late Ian Cameron had used their services. This was known in 2012, however the data leak renewed the focus on the Prime Minister to declare whether he had ever profited from offshore tax arrangements or was likely to in the future.

After four days of questioning by the media he said he and his wife, Samantha, had owned shares in Blairmore, a dollar-denominated global equity investment fund which they sold in 2010. The message from Downing Street on the first day back from the Easter recess was for the Prime Minister, the Chancellor, the Leader of the Opposition and the Shadow Chancellor to all produce their tax returns - an unprecedented move from the political elite.

The Prime Minister’s spokeswoman said: “When it comes to publishing tax returns the Prime Minister has made clear that he was willing to be transparent and that it is right for potential Prime Ministers to also do so.

“I think with regards to who is in charge of the nation’s finances, the Prime Minister takes that the view the Chancellors and Shadow Chancellors should show transparency too, but he is not recommending that it should be the same thing for everyone else involved in politics.”

In the Commons, Mr Cameron reiterated that there will not be a blanket move to make MPs publish their returns. However, some have made the personal decision to release them, as has Scotland’s First Minister, Nicola Sturgeon.

Mr Cameron defended his father’s business arrangements to MPs and said there was no attempt to avoid paying UK tax, and that everything had been carried out within the bounds of the law.

He said: “This investment fund was set up overseas in the first place because it was going to be trading predominantly in dollar securities.

“So like very many other commercial investment funds it made sense to be set up inside one of the main centres of dollar trading.

“There are thousands of these investment funds, and many millions of people in Britain who own shares, many of whom hold them through investment funds or unit trusts.

“Such funds, including those listed outside the UK, are included in the pension funds of local government, most of Britain’s largest companies, and indeed even some trade unions.”

He went on to outline a number of ways the Government will pursue aggressive tax avoidance practices as revealed in the Panama Papers and has set up a cross agency task force to analyse and act on any information that shows money is illegally bypassing the UK Treasury.

Labour leader Jeremy Corbyn, however, said the country was angry that the richest in Britain are able to take advantage of offshore tax arrangements.

He added: “Six years of crushing austerity...families leaning on the food banks to feed their families...much of this could have been avoided if our country had not been ripped off by the rich refusing to pay their tax.”

Mr Cameron said £200,000 given to him by his mother as a gift was a form of parental giving that is “something that tax rules fully recognise”.