Michael Dugher writes to Cameron over Crosby’s mysterious Malta-based firm

Dear Prime Minister,

This morning the Daily Mirror reported that your election strategist, the tobacco lobbyist Lynton Crosby, is a co-owner of a Malta-based firm, Rutland Limited, which provides “consultancy and technical services”. The company is reportedly run from the offices of a trust firm specialising in “wealth preservation”.

Last year you said that some aggressive tax avoidance schemes “are quite frankly morally wrong” (PA, 20 June 2012), and that “there are some aggressive tax avoidance schemes that should be roundly condemned” (Hansard, 25 June 2012, column 47).

In January this year you said that “Any businesses who think that they can carry on dodging that fair share or that they can keep on selling to the UK and setting up ever-more complex tax arrangements abroad to squeeze their tax bill right down. Well, they need to wake up and smell the coffee because the public who buy from them have had enough” (Speech to Davos World Economic Forum, 24 January 2013).

In June this year you said that “people rightly get angry when they work hard, they pay their taxes and then see others not paying their fair share” and that “anyone who comes to the UK should pay their taxes” (10 Downing Street press briefing, 13 June 2013).

In July this year you said that “taxpayers, governments and businesses all suffer when some companies manipulate the tax system to avoid paying their fair share of taxes” (10 Downing Street press release, 19 July 2013)

Given your previous words on this matter, I am sure that you will be doing everything you can to ensure that Mr Crosby is not using his Malta-based company to avoid paying taxes – as this would be inconsistent with his role as your adviser. I would be grateful if you could answer the following questions:

• What steps have you taken to establish that Lynton Crosby’s use of a Maltese company does not reduce his tax liability in the UK?
• Are you comfortable that your senior adviser owns a Malta-based company whose activities are unknown while being paid for services by the Conservative Party?
• Do you believe that Lynton Crosby’s tax arrangements are morally wrong?
• Does your belief that “anyone who comes to the UK should pay their taxes” apply to Lynton Crosby?
• Do you believe that Lynton Crosby’s company is an example of someone “selling to the UK and setting up ever-more complex tax arrangements abroad to squeeze their tax bill right down”?

For months now you have refused to answer a series of Parliamentary Questions and have consistently blocked Freedom of Information requests about the role and activities the cigarette lobbyist and your chief strategist, Lynton Crosby, has played in Downing Street. The more you refuse to answer basic questions regarding Lynton Crosby, including in relation to these important revelations about his business affairs, the more you will leave an impression that you are engaged in a systematic cover up about Lynton Crosby.

Yours sincerely,

Michael Dugher MP

Shadow Minister without Portfolio and Vice Chair of the Labour Party