Prince Charles of the 'black-spider letters' is not shy in spewing his opinions on a range of issues. Funny that one of his little lobbying campaigns to ministers seems to be remarkably silent on the hot topic of large companies avoiding tax. Not so funny when you see his main cash-cow the Duchy of Cornwall does not pay corporation tax. Why is this the case, when quite obviously the Duchy is a "company" that, at the very least, makes overpriced biscuits? Well, the Duchy of Cornwall claims it is not a "separate entity for tax purposes". So let me see, Prince Charles and the Duchy of Cornwall are one in the same thing, and he just sells all the biscuits that he can't eat or throw to his servants as a a spin-off. I wonder if Cameron and the rest of the Eton posh boys will go after Charles with the same gusto that they've shown for the likes of Starbucks, Google and Amazon?
'HM Revenue & Customs has been asked to investigate alleged tax avoidance by Prince Charles's £700m hereditary estate.
'The duchy of Cornwall last year provided Charles with an income of £18m and HMRC's anti-avoidance group is now being asked to examine its non-payment of corporation tax following a potentially significant court ruling on its legal status.
'The issue has been raised by an accountant investigating the tax affairs of the duchy - an agricultural, commercial and residential landowner.
'He has analysed the impact of a judicial ruling handed down last year. Anti-monarchy campaigners claim it shows the duchy is running "a well-entrenched tax avoidance scheme".
'The duchy insists it "is not subject to corporation tax as it is not a separate legal entity for tax purposes". But John Angel, principal judge at the information rights tribunal, ruled last December it was a separate legal body to the prince.
'Accountants now believe the ruling could leave the duchy exposed to the 24% levy on profits other organisations must pay. Any change to its tax status could result in a cut to the prince's income.
'Republic, the campaign for an elected head of state, has asked HMRC's anti-avoidance team to investigate whether the ruling means the duchy is now "using a highly questionable interpretation of its legal status as a means of avoiding corporation tax obligations"'. (Guardian article & Republic commentary).
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