Labour Urges PM to Verify Absence of Non-Dom Ministers in History
The Labour Party has called on Prime Minister Boris Johnson to verify the absence of non-domiciled (non-dom) ministers in the history of the UK government. The move comes after reports emerged that the new Chancellor of the Exchequer, Rishi Sunak, is a non-dom.
Non-dom status allows individuals to avoid paying UK taxes on their overseas income. The Labour Party has long been critical of the non-dom system, arguing that it allows wealthy individuals to avoid their fair share of taxes.
In a letter to the Prime Minister, Labour MP Rachel Reeves said: “Given the controversy surrounding the non-dom status of the new Chancellor, we urge you to verify that no other non-dom ministers have served in government in the past.”
Reeves added that the public had a right to know whether non-dom ministers had been involved in making decisions that affected the tax system. “It is important that the public has confidence that those who make decisions about tax policy are not benefiting from tax avoidance schemes themselves,” she said.
The non-dom system has been a contentious issue in the UK for many years. Critics argue that it allows wealthy individuals to avoid paying their fair share of taxes, while supporters say that it encourages investment in the UK.
Sunak, who was appointed Chancellor in February 2020, was born in the UK but his parents are Indian. He is reported to have non-dom status because his father was a wealthy businessman in India.
The Labour Party has called for the non-dom system to be abolished, arguing that it is unfair and undermines the UK’s tax system. However, the Conservative government has defended the system, saying that it is an important tool for attracting investment to the UK.
The controversy surrounding Sunak’s non-dom status has put the issue back in the spotlight. Labour’s call for the Prime Minister to verify the absence of non-dom ministers in the history of the UK government is likely to add to the pressure on the government to review the system.
In response to the letter from Labour, a spokesperson for the Prime Minister said: “We do not comment on individual tax affairs. The Chancellor has made clear that he is fully compliant with all tax laws and regulations.”
The spokesperson added that the government was committed to ensuring that everyone paid their fair share of taxes. “We are determined to crack down on tax avoidance and evasion, and we will continue to take action to ensure that everyone pays their fair share,” they said.
The debate over the non-dom system is likely to continue, with both sides arguing that their position is the right one. However, the controversy surrounding Sunak’s non-dom status has highlighted the need for greater transparency and scrutiny of the tax affairs of those in positions of power.
