UKC

I was rather amazed this little gem didn't gain more news coverage yesterday. Margaret Hodge, prominent Labour MP, who has made her name as head of the public accounts committee by fiercely attacking tax avoiders, has been found to have received £1.5 million of shares in a company from a family offshore trust as part of a deal with HMRC called the Liechenstein Disclsoure Facility ("LDF"). By defiition, this means that tax evasion was involved and the use of the LDF means that criminal prosecution is avoided and the penalty is reduced from a possible 100% to only 10%. The trust shareholding was apparently based in Liechtenstein having previously been held in Panama, beloved of tax evaders and financial criminals. It seems likely to me that the holding was deliberately moved from Panama to Leichtenstein so as to be able to take advantage of the LDF, a not uncommon tactic, rather than face the music under normal tax rules. Whilst Ms Hodge may only have been a beneficiary of the trust, it is inconceivable that she did not know that this was effectively dirty money.

Regardless as to whether it was morally right for her to receive those shares, how she can have performed her public role interrogating and shaming people in the same position is beyond me. The word hypocrisy is over-used in political arguments but it would be more than appropriate in this instance.

In reply to Skyfall:

Real pity because I liked the way she was happy to have a go at the "rich and powerful"

Maybe the committee room needs to a full length mirror installing now.

In reply to Skyfall:

The ft story is considerably less alarmist

http://www.ft.com/cms/s/0/4d9e16b4-ee3d-11e4-98f9-00144feab7de.html#axzz3Ym...

In reply to Skyfall:

From what I remember her family is wealthy and it was probably set up in trust and she maybe able to distance herself from the decisions.This is done with most politicians who have " business interests" from whichever party and is perfectly acceptable.

So it is debateable whether it is "dirty" money.

Now whether its then a good idea for Hodge to take the moral ground...who knows... she is an astute politician so I suspect it is a non story.

In reply to neilh:


As I said, she would have been a beneficiary under the trust but it is inconceivable that she didn't know what was going on at the time she received the shares as part of an LDF deal.


Not really - by defintion tax evasion was involved. Otherwise use of the LDF is completely unnecessary. Accepted, using the LDF "launders" it in a way that is agreed with the HMRC. Personally I would have a problem with that but, even ignoring that, to accept these shares puts her in a very difficult position.

In reply to toad:

Funny, I read the FT story and thought it was quite strong for a paper who can't throw too many allegations about. Part of my comments derive from actually knowing a lot about LDF deals, which I suspect the reporter/editor don't.

Frankly the use of a Panama offshore structure, let alone a Liechtenstein one, rings the most alarm bells. The only people I have known use or consider using Panama have been doing so to precisely because their money laundering/reporting rules are so lax and their trust/foundation laws allow people to hide money so easily.

In reply to Skyfall:

How dare you attack the noble, high-minded, fearless and above all consistent "Enver" Hodger? Are you that deranged scoundrel Demetrious Panton, with his pretended victimhood?


You'll be saying that Harridan Hatemen is hypocritical for pushing her hubby through an all-woman shortlist, or suggesting that there was something disreputable about her association with PIE next!

It will be a wonderful thing if, due to the entire collapse of Labour in Scotland, we may still paradoxically get the grotesquely inadequate Miliband as Prime Minister, then these noble upstanding women will again be able to pry into the minutiae of our lives and tell us what to think and how to feel, using vague, badly-drafted and menacing laws to enforce their intrusiveness.

A bizarre reward to Miliband for LOSING an election.

In reply to Simon4:

Careful now, there's a bit of spittle left on your old boy's tie...