George Osborne advised using financial loopholes

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'Osborne advised using financial loopholes to avoid tax and care costs':
http://www.theguardian.com/politics/2015/feb/16/osborne-advised-using- financial-loopholes-to-avoid-tax-and-care-costs

'George Osborne once advised people to use “clever financial products” that could have helped them reduce care costs and inheritance tax, a video from 2003 shows.

The re-emergence of the footage will be embarrassing for the chancellor as it comes amid controversy about the government’s lack of prosecutions of tax evaders who had accounts at HSBC in Switzerland.

Downing Street has also been criticised over the subsequent appointment of the former HSBC boss Stephen Green as a trade minister and the lack of investigation into the bank’s activities.

As Labour accused Osborne of avoiding answering questions about the scandal, the video of him as a backbench MP more than a decade ago was dug out by the Huffington Post.




“The one piece of advice I would give to Bill [a viewer] is that there are some pretty clever financial products that enable you in effect to pass on your home, or the value of your home, to your son or daughter and then get personal care paid for by the state,” Osborne said.

He adds: “I probably shouldn’t be advocating this on television.”

In government Osborne has taken a position against tax avoidance, saying aggressive avoidance is “morally repugnant”.

Richard Murphy, a tax expert at the Tax Justice Network, said what the future chancellor was proposing in the clip was “an avoidance scheme in relation to both inheritance tax and care costs”.

He said Osborne was clearly talking about schemes that involved the passing of assets from parent to child through vehicles such as a trust, which would mean the original owner could be eligible for means-tested care from the state, and was also no longer liable for inheritance tax if they had enough money to start with.

Care costs were at that time applicable if people had more than £16,000, while the inheritance tax threshold was about £250,000.

Murphy said: “Of course, not all of those schemes worked. There is a high degree of artificiality to them, much more so than what Ed Miliband was accused of in relation to a deed of variation.


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“George Osborne was obviously aware of them and the motive of these schemes, which was quite clearly making sure inheritance tax was minimised and care costs dumped on the state.”

A senior Labour source said: “We know Cameron and Osborne are turning a blind eye to tax avoidance. But we didn’t know that Osborne was also advising people how to do it in the first place.”

The circulation of the video will increase the pressure on the chancellor to speak out against tax avoidance again, as Labour taunts the Conservatives about being on the wrong side of the argument when it comes to failure to prosecute tax evaders at the same time as vigorously pursuing those who overclaim benefits.

Chris Leslie, the shadow chief secretary to the Treasury, said: “We’ve now had a week of silence from George Osborne – the submarine chancellor still hasn’t surfaced. But it is time he and David Cameron finally started answering questions about HSBC and Lord Green.

“Why has there only been one prosecution out of 1,100 names? Did David Cameron and George Osborne discuss tax evasion at HSBC with Lord Green? Why did they appoint Lord Green as a Tory minister months after the government received these files? Why did George Osborne and the Treasury sign a deal with the Swiss in 2012, which prevents the UK from actively obtaining similar information in the future?

“In this row over tax evasion David Cameron and George Osborne are now guilty of political evasion.”

How come the 'Sun' (and the 'Evening Standard) hasn't got screaming headlines, 'GOTCHA'?

The Sun:
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Chancellor George Osborne's hamburger twitter ... - The Sun
www.thesun.co.uk/sol/.../george-osborne-burger-twitter-pic-stunt.html
'GEORGE Osborne was ridiculed last night for trying to appear a man of the people ... Sun apps: Keep updated 24/7 Sun Goals: Watch every goal on our football ...'


George Osborne cuts OAP winter fuel cash to ... - The Sun
www.thesun.co.uk/.../George-Osborne-cuts-OAP-winter-fuel-cash-to-exp.. .
'UP to 120,000 expat pensioners will lose their winter fuel allowance under plans to be announced by George Osborne today. The Chancellor will unveil a ...'


Chancellor George Osborne strikes back | The Sun |News ...
www.thesun.co.uk/sol/.../Chancellor-George-Osborne-strikes-back.html
'GEORGE Osborne today triggers a head-on clash with unions in an all-out ... Sun apps: Keep updated 24/7 Sun Goals: Watch every goal on our football app ...'


Here's what the Evening Standard has to say:
George Osborne - Evening Standard
www.standard.co.uk/topic/GeorgeOsborne
'The London Evening Standard, bringing you the latest news on George Osborne as it happens.' Errr???


Related issues:
'What has Iain ‘£39 breakfast’ Duncan Smith got against receipts?':
http://politicalscrapbook.net/2015/02/what-has-iain-39-breakfast-dunca n-smith-got-against-receipts/

‘Independent research’ underpinning Tory attacks is written by former party staffer':
http://politicalscrapbook.net/2015/02/independent-research-underpinnin g-tory-attacks-is-written-by-former-party-staffer/

'There can be no complaints about think tank wonker Adam Memon when it comes to his stated aim of promoting his employer’s work in the media. The Centre for Policy Studies’ head of economic research has seen his research cited in national newspapers at least twice — to underpin Tory attacks as the election hots up.

David Cameron cited Memon’s research to back up his claim that Labour tax proposals would cost 100,000 jobs:


“Figures from the Centre for Policy Studies, an independent think-tank, estimated the likely impact of Labour’s policy to increase corporation tax from its current low levels.

And Memon was quoted alongside Iain Duncan Smith in a Sun article which was again based on his research and begins:


“At least 750,000 extra families will be trapped on benefits if Labour wins the next election, a report reveals.

“Authors Adam Memo [sic] and Tim Knox say: “The size of the state is strongly related to welfare dependency in the UK.

“Adam from the CPS” … or, as his friends and associates used to call him, “Adam from Tory HQ”:

“Adam joined the Centre for Policy Studies in January 2014, having previously been at the Conservative Research Department.”

Still, it’s good to know that the Tory donors which fund CPS are getting their money’s worth.

Unbelievably, the CPS even have the temerity to attack charities for refusing to reveal who funds them — despite themselves having the second lowest rating from transparency website Who Funds You.

UPDATE: More from the “independent” CPS, which was actually founded by, errr, Maggie Thatcher: (go to link to watch video).

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Rifkind and Straw Exposed in ‘Cash for Access’ Scandal – Just How Dirty are our Politicians?:
http://www.scriptonitedaily.com/2015/02/23/rifkind-and-straw-exposed-i n-cash-for-access-scandal-just-how-dirty-are-our-politicians/

'Rifkind and Straw were secretly filmed by Channel 4’s Dispatches team and the Telegraph offering their services to a fake corporation. Both MPs offered to influence legislation in favour of the business, in return for cash. Straw brags that he is ‘aware that I bring my name’ in return for £5,000 a day. He also boasts that he previously used his influence to change legislation on behalf of a Chinese corporation.

Rifkind meanwhile was able to secure a contract for privatised NHS services for a company, despite a rival bid that was £7m cheaper.

Unaware that he is being filmed, and that the company representative he is speaking to is actually a journalist, Rifkind laughs when asked if he has time to commit to lobbying in the interests of the pretend company:

“You’d be surprised how much free time I have. I spend a lot of time reading, I spend a lot of time walking. Because I’m not a minister, or full-time working for one person.”

The MP for Kensington and Chelsea apparently forgets he is supposed to work full-time for his electorate of over 62,000 people. In fact, he is paid a basic salary of £67,000 a year to do so. On top of this, Rifkind has claimed expenses of more than £100,000 for every year on record. At the same time, the veteran Tory pulls in £240,000 a year on private sector consultancy work – which means lobbying for the interests of those businesses happy to pay him for the pleasure.

The Tories have suspended Rifkind while the case is investigated, and both men have had their parliamentary whip removed (meaning they can’t act as enforcers for the time-being). Both men are protesting their innocence.

Sadly, the behaviour of Rifkind and Straw is not aberrant, but rather typical of high profile politicians in Westminster today.

The Government

The Prime Minister

Prime Minister David Cameron is a lineal descendant of King William IV, great grandson of a 1st Baronet, grandson of a 2nd baronet, son of a stockbroker and an aristocrat. He was gifted with an Eton and Oxford education, and one might argue his career in politics, through sheer privilege of birth. He enjoys the benefits of a family fortune made in tax havens.

The Chancellor

Chancellor George Osborne is heir apparent to the Osborne baronetcy, educated at St Paul’s School and Magdalen College Oxford and recipient of a £4m trust fund.

On becoming Chancellor in 2010, he quickly ‘flipped’ his first and second homes to claim over £100k of taxpayer money for interest payments on a mortgage for his £455k Cheshire pad. He later sold the home for over £1m having made improvements partly funded by taxes. He also claimed taxpayer money to cover payments on a horse paddock for the property.

When Osborne undersold the Royal Mail for less than half its value, meaning investors could buy the stock at knock down prices and sell it on almost immediately at a profit, one of the chief beneficiaries was his Best Man Peter Davies – who made £18m in a few short days.

The Work and Pensions Secretary

Work and Pensions Secretary Iain Duncan-Smith lives rent free in a £2m country estate owned by his aristocratic father in law. Whilst claiming he could live happily on the £53 a week some unemployed job seekers receive, he has claimed £39 on expenses for his breakfast.

In the Betsy Gate scandal of 2001, it was revealed that the tax payer was paying £15,000 a year for Duncan-Smith’s wife to become his ‘diary secretary’. There is ample evidence that Betsy didn’t perform any such role worthy of the salary, which was hardly likely to register in the bank accounts of the daughter of the moneyed 5th Baron Cottesloe of Swanbourne and Harwick.

Duncan Smith currently costs the tax payer a whopping £134, 565 in salary and expenses.

The Health Secretary

Jeremy Hunt, busy dismantling and flogging off the NHS, is also up to his eyes in corruption. Despite calls for his resignation after colluding with the Murdochs to give them a monopoly TV and Press in the UK in 2012, Cameron chose instead to promote him to Secretary of State for Health. And who has Hunt appointed as the new Chief of NHS England? Simon Stevens – former Chief of US private healthcare giant United Health and the man who started the NHS down the road of ‘competition’ under New Labour.

The Business Secretary

Vince Cable, sold to the nation as the lovable granddad that would put compassion back into the government’s economic strategy is nothing of the sort. Cable is being hauled before MPs for questioning after dramatically undervaluing the Royal Mail at privatisation – resulting in a £750m loss to the taxpayer, thanks to a deal he cooked up with the Banks keen to profit from it. Mark my words, when this parliament is through – Vince will be consulting for one of those Banks.

The Home Secretary

Theresa May’s husband is a director/shareholder in G4S. May has faced several conflict of interest allegations during her tenure. One of the worst was the case of G4S winning a £200m contract to run Lincolnshire police operations. G4S had recruited law firm White and Cade to support their bid. In a stunning coincidence, May invited Tom Winsor, a lawyer from the same firm, to conduct ‘an independent review of police reform’ in the run up to the bid – giving the lawyer access to privy information and contacts.

The Culture Secretary and Equalities Minister

Maria Miller is Culture Secretary and Equalities Minister for the UK government. Between 2005 and 2009 she claimed £46,000 in fraudulent expenses on the mortgage on a family home that she later sold for £1.2m – and used her position to bully a commissioner in efforts to keep the whole thing quiet. Her punishment? Giving back £5,000 and a 32 second apology in the House of Commons.

The Opposition

The Labour Party have their own dark history when it comes to revolving door politics.

After leading the war in Iraq, creating billions in business for JP Morgan bank – Tony Blair became a Senior Advisor for JP Morgan.

After opening up much of the nation’s law, policing and justice services to private security companies such as G4S while Home Secretary – former Labour MP John Reid became a Group Consultant for…G4S.

And here we have Jack Straw, the former Foreign Secretary who sealed the papers that could see him convicted of war crimes sealed away for 70 years – now selling himself for £5,000 a day to change the law to favour of Chinese companies.

They’re all in it Together...........'

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Top adviser to Chancellor George Osborne filmed smoking crack cocaine in drugs den: http://www.mirror.co.uk/news/uk-news/top-adviser-chancellor-george-osb orne-5251411

'One of Chancellor George Osborne’s senior advisers on economic policy has been captured on video smoking crack cocaine in a drugs den.

Prof Douglas McWilliams, who last year ­estimated we would all be £165 a year better off by the election, is seen inhaling it through a glass tube at a flat in North London.

The executive chairman of influential City think-tank the Centre for Economic and Business Research then slumps dazed on a sofa after repeatedly smoking on the makeshift crack pipe involving a miniature Martell Cognac bottle.

Red-faced and slurring his speech, he later told the dealer he had “too much” and that he had spent the day on a binge.

Two rocks of the deadly drug can clearly been seen on a table beside the dazed professor. The grainy footage, seen by the Sunday Mirror, will heap embarrassment on the Chancellor and raise serious ­questions about his choice of adviser.

A source said: “Last Sunday McWilliams turned up at the den around 10pm and was there about a hour and a half. There were two rocks of the drugs. He smoked it over a table and then sat there all spaced out.

“He was in a suit and started talking about the economy and all that for about 20 minutes. He kept mentioning someone famous he worked with but didn’t make much sense. He was asked if he wanted any more and said ‘I’ve had too much’.........”