Richard Tice has criticised the notion that people should “pay the maximum tax” they “possibly could”, after dismissing reports into his own tax arrangements.
Speaking at a press conference in central London on Monday, Mr Tice hit back at calls from the Labour Party for HMRC to investigate his tax affairs after the Sunday Times reported he had “avoided nearly £600,000 in corporation tax” through his property company.
Asked whether his tax affairs were “morally above board”, he said: “The point is, there is no obligation. How many friends of yours would voluntarily choose to pay more tax than they are legally obliged to do?
“The idea that, morally, we have got to pay the maximum tax we possibly can – therein lies the road to ruin for the UK as an economy.”
Asked if he would encourage others to pay as little tax as possible, he said: “Yes, within the legal limit. That is what you should do.
“Don’t morally or voluntarily give more tax to incompetent, wasteful, hard-left, socialist governments to waste on your behalf.”
The Boston and Skegness MP said his firm Quidnet Reit Ltd was “a UK company paying UK tax in accordance with UK laws”, and instead accused the Labour Party of failing to pay tax on the revenue of its own property company.
He said: “How much corporation tax do we think Labour Party Properties Limited has paid in 25 years? Any guesses? Zero. A big, fat zero.
“Because their property costs and their administration expenses coincidentally – I’m sure it was just a coincidence – have matched, or exceeded the rental income.”
It is understood that the accounts for Labour Party Properties Ltd are independently verified by auditors.
Responding to Mr Tice’s press conference, Anna Turley MP, chair of the Labour Party, said: “Richard Tice is taking the public for fools. He needs to come clean with the British people as to why he’s gone to such extreme lengths to avoid paying £600,000 in tax.
“Tice claimed a particular status for his company for two years and 11 months so that he wouldn’t have to pay corporation tax. The idea that this is the same as having an ISA or making pension contributions is frankly absurd, and Tice knows it.
“Reform pretend to be on the side of working people, but Tice knows that the extremes he has gone to in order to pay less tax are anything but normal.
“While Tice blusters and makes excuses about his own tax affairs, his party is busy hiking council tax and cutting services despite promising to cut council tax and waste. They can’t be trusted, and they are not on your side.”
