Pressure on PM Cameron over Panama papers

LONDON, Wednesday

British Prime Minister David Cameron said on Wednesday he had no personal offshore funds as he faced growing pressure over the so-called Panama Papers, which raised questions about his family’s financial affairs.

A massive leak of documents from Panamanian law firm Mossack Fonseca revealed how an investment fund co-founded by the premier’s late father, Ian Cameron, avoided paying taxes in Britain for 30 years by basing itself in the Bahamas.

Faced with calls by the opposition Labour Party for an investigation into all those implicated in the leak, including his family, Mr Cameron said his wealth consisted of his salary, some savings and a house.

“I own no shares, no offshore trusts, no offshore funds, nothing like that,” Cameron said.

Downing Street had previously insisted that any offshore holdings by members of his family were a “private matter”.

However, it issued a statement Tuesday stating: “To be clear, the prime minister, his wife and their children do not benefit from any offshore funds.”

PM EMBARRASSMENT

The revelations about his father are embarrassing for Mr Cameron, who has sought to lead international efforts to improve financial transparency and whose government hosts an anti-corruption summit next month.

He insisted that “no prime minister has done more” to tackle tax evasion and aggressive tax avoidance, and said British authorities would look into the Panama leaks.

However, campaigners called for more action to tackle secretive company ownership in British overseas territories such as the Cayman Islands and the British Virgin Islands.

Labour leader Jeremy Corbyn raised the prospect of Britain taking full control of the territories if they did not act.

Ian Cameron helped found Blairmore Holdings Inc in the Bahamas in the early 1980s and was reportedly one of five UK-based directors until shortly before his death in 2010.

His offshore activities were already in the public domain but the leaked documents revealed that the investment fund hired local residents - including a part-time bishop - to sign its paperwork to avoid paying tax in Britain.

“In 30 years, Blairmore has never paid a penny of tax in the UK on its profits,” said The Guardian newspaper, which has seen the leaked documents, along with the BBC.

There is no suggestion that the fund acted illegally or that the family did not pay tax on any repatriated assets.