William Hague assured Tony Blair that Ashcroft would pay "tens of millions a year in tax". In June, Hague said he had "no reason to think that he’s not complied."
A decade ago William Hague assured Tony Blair that upon becoming a peer, Michael Ashcroft would pay “tens of millions a year in tax”. As it emerged yesterday that Ashcroft had, in fact, been a ‘non dom’ during this period and avoided £127 million in tax, Left Foot Forward wonders why the shadow foreign secretary told Jeremy Paxman repeatedly in June last year that he had “no reason to think that he’s not complied with the commitments that he gave.”
The exchange of letters in 1999 between Tony Blair and William Hague, reproduced in this morning’s Guardian, outline the then-Tory leaders’ assurances about Michael Ashcroft:
“He is, however, committed to becoming resident by the next financial year in order properly to fulfil his responsibilities in the House of Lords. This decision will cost him (and benefit the Treasury) tens of millions a year in tax yet he considers it worthwhile.”
But in June 2009, William Hague faced 17 questions from Jeremy Paxman on Newsnight about Lord Ashcroft including:
PAXMAN: Just one final point, in the current climate of suspicion about politics your deputy chairman Lord Ashcroft, a man whose peerage you lobbied for, saying that he would become resident in Britain for tax purposes, can you just tell us, is he resident in Britain for tax purposes now?
HAGUE: I’ve no reason to think that he’s not complied with the commitments that he gave …
PAXMAN: Have you asked him directly?
HAGUE: I have discussed it with him and I have no reason to think he hasn’t complied
Watch it:
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16 Responses to “Hague in June: I have no reason to think Ashcroft hasn’t complied”
Tristan Osborne
RT @leftfootfwd: Did Hague lie? In June he told Paxman he had "no reason to think [Ashcroft] hasn't complied" http://cli.gs/Rq44A #Cashcroft
Jessica Asato
Tories say story on Ashcroft is "flogging a dead horse" Nope, I think it's very much alive.. http://bit.ly/bb73sy
Andy Taylor
RT @Jessica_Asato: Tories say story on Ashcroft is "flogging a dead horse" Nope, I think it's very much alive.. http://bit.ly/bb73sy
Guido Fawkes
And Lakshmi Mittal? Gave £4 million to Labour pays no income tax lives in Kensington, ring any bells?
John H
@Guido And Lakshmi Mittal made a solemn undertaking to pay “tens of millions” of taxes when, exactly? I’m not saying that Mittal or Lord Paul or any of the rest of them are an enhancement to the honour and dignity of politics, but with Ashcroft there are the additional factors of the lack of integrity over the undertakings made, the years of evasion, and the active role he has played in politics.
That said, the aspect to this I’ve not seen any comment on is how the Cabinet Office managed to let Ashcroft run rings round them so easily. He must have seen them coming a mile off. Did they take any advice on the tax implications of being “resident” vs “permanently resident” vs “domiciled”?