British MPs challenge tax exemptions for Charles
Prince Charles has become embroiled in the parliamentary crusade against tax avoidance after the powerful public accounts committee demanded the government justify tax exemptions enjoyed by his £728m hereditary estate.
Margaret Hodge, who chairs the Commons committee that last year investigated tax avoidance by Google and Amazon and accused Starbucks of "immoral" behaviour, has asked ministers if they can still defend an arrangement that allows the Duchy of Cornwall not to pay corporation tax or capital gains tax on trading that last year provided Prince Charles with an £18.3m private income.
The public accounts committee (PAC) said it made the move after more than 30 MPs and members of the public complained about the duchy's arrangements. A full inquiry is likely to be launched into the matter, a committee source said.
The PAC is also likely to investigate the wider royal finances including public spending on the Queen and Prince Charles's travel and official homes.
Hodge said she has written to Greg Clark, the financial secretary to the Treasury, stating that "in view of the committee's and the public's concern on this matter" he should clarify "why the tax treatment of the duchy remains defensible".
"A lot of the work we are doing is around tax collection and this is another element the taxpayer has an interest in," said Hodge. "Taxpayers are concerned that everyone pays their fair share."
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