In the wake of the Panama Papers scandal - reports highlighting the tax-avoiding tactics of the super-rich - News Shopper can reveal how your MPs feel about the prospect of having to publish their own tax records in light of the world’s largest data leak in history.

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Should Westminster MPs release their tax records?

The Panama Papers reveal how the fourth largest offshore law firm in the world, Mossack Fonseca, instructed at least 214,000 offshore holdings within its books, according to the International Consortium of Investigative Journalists (ICIJ).

Of the 14 MPs contacted only one is in outright favour of publishing their tax records.

Five MPs are indifferent to the move while three of those five MPs believe that the current rules and declarations in a public register are enough to satisfy tax accountability.

News Shopper:
Clive Efford, Eltham MP 

Clive Efford, Eltham MP, who is in favour of idea, said: “I think the recent revelations contained in the Panama documents have underlined the need for transparency in Parliament.

“I would support moves to ensure that MPs and members of the House of Lords should publicise their tax returns.”

Tax avoidance is legal whereas tax evasion - ducking out of the tax you’re liable to pay - is illegal.

The news however has been particularly embarrassing for David Cameron following the revelation that the PM’s own father, Ian Cameron, held offshore accounts through the British Virgin Islands law firm.

In the weeks following the April leak, the premier disclosed the 2010 sale of his tax-free £30,000 stake in his Dad’s Panama-based offshore trust, Blairmore Holdings, which he and his wife had held since 1997.

News Shopper:
Teresa Pearce, Erith and Thamesmead MP 

Erith and Thamesmead MP, Teresa Pearce said she would have, “no objection to the publication of Tax Returns,” but that she wasn’t sure how relevant it was to offshore accounts.

Ms Pearce said: “We need openness.

“Many of these places are British territories and the reason many people put their money there is not just the tax advantage but the secrecy.

“Let’s get rid of the secrecy.”

Both MPs for Dartford and Gravesham are indifferent to the idea of publishing their tax records.

News Shopper:
Adam Holloway, Gravesham MP  

Gravesham MP Adam Holloway told News Shopper: “I don’t have enough cash to put into an offshore account, even if I was so inclined to be a crook.

“People should keep as much of the money that they earn to spend for themselves, in a way that they choose, but if it’s evasion, they’re effectively stealing from the rest of the population.

“There is a difference between tax avoidance and tax evasion.

“I’m not quite sure why MPs should be a special case - perhaps all public sector workers should do it?”

Dartford’s Gareth Johnson added: "I am quite relaxed about this issue but I doubt publishing tax returns would make much difference.

"It's difficult to know where to draw the line on this kind of thing.

“I recall some people saying all Parliamentary candidates should publish their medical records.

“I don't think every councillor or public sector worker should have to divulge their tax returns.

"MPs currently publish business interests and expenses and while we need to keep this under review it's probably sufficient."

News Shopper:
Gareth Johnson, Dartford MP

The PM and his chancellor, George Osborne, as well as Labour opposition leader Jeremy Corbyn and the shadow chancellor of the exchequer, John McDonnell, have all published their tax records in the aftermath of the Panama documents, but whether or not all MPs should publish their tax records is a matter up for debate.

David Evennett, MP for Bexleyheath and Crayford believes that the current rules and declarations in a public register are enough to satisfy tax accountability.

He said: “There is a strong case for the Prime Minister, Leader of the Opposition, Chancellor and Shadow Chancellor to publish information on their tax returns.

“However, any proposals to abandon taxpayer confidentiality for all MPs would need to be carefully considered and debated.

“MPs are already subject to strict rules, and have to declare any financial interests in a public register.

“I strongly support this and believe it is system we should continue to follow.”

News Shopper: MP David Evennett in the centre of Bexleyheath - good for shopping and eating out
David Evennett, Bexleyheath and Crayford MP

James Brokenshire, MP for Old Bexley and Sidcup, is in agreement with Mr Evennett saying: "MPs are subject to specific requirements to declare relevant financial interests in a public register.  

"These rules provide for the disclosure of information which might reasonably be seen to have an influence on the actions of a Member of Parliament.  

"Although it is right that we keep requirements under review, I believe this mechanism continues to provide the most appropriate way to provide transparency."

News Shopper: Chancellor George Osborne
Chancellor of the Exchequer, George Osborne

Public furore over the revelations has forced the government to react, tasking the HMRC to carry out a £10m inquiry and a chancellor’s commitment from the UK that information on the true owners of offshore shell companies would be shared with France, Germany, Spain and Italy by January 2017.

Eight other MPs including Lewisham East’s Heidi Alexander, Lewisham West and Penge’s Jim Dowd, Lewisham and Deptford’s Vicky Foxcroft, Greenwich’s Matthew Pennycook, Orpington’s Jo Johnson, Bromley and Chislehurst’s Bob Neill, Beckenham’s Bob Stewart and Sevenoaks Michael Fallon were unable for comment.

Key points on the Panama Papers

  • What are the Panama Papers and what’s happening now?
  • The Panama Papers were first leaked to the German newspaper Süddeutsche Zeitung, which in turn shared them with the International Consortium of Investigative Journalists (ICIJ).
  • The leaked 11.5m files, or 2.6TB of data, shows accounts held by world leaders, politicians and influential figures linked with the offshore law firm Mossack Fonseca based in the British Virgin Isles.
  • Mossack Fonseca provides services such as incorporating companies from all over the world into offshore jurisdictions like the British Virgin Islands - the Panama-based law firm administers and guarantees offshore firms for a yearly fee.
  • Embarrassed world leaders include Iceland’s prime minister Sigmundur Gunnlaugsson who has since stepped down and a $2bn trail in offshore accounts leading back to Russia’s Vladimir Putin and his associates.
  • The files also include details of offshore accounts registered with David Cameron’s father, Ian Cameron in Blairmore Holdings, of which the PM had a £30,000 stake.
  • Edward Troup, the boss of Revenue & Customs (HMRC) overseeing a £10m inquiry into the Panama Papers, was a partner at a top City law firm, Simmons & Simmons that acted for Ian Cameron’s trust and other offshore companies named in the leak.
  • In parliament on April 11, Eltham MP Clive Efford said:  “The public would be more inclined to take the Prime Minister at his word when he says that he wants to clamp down on tax avoidance had his Government not appointed Edward Troup as executive chair of Her Majesty’s Revenue and Customs in 2012.”
  • At an IMF spring meeting on April 14, George Osborne pledged to share information on shell companies with France, Germany, Italy and Spain by January 2017.
  • David Cameron doesn't believe that all MPs should publish their tax records.

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