Prince Charles's Tax Affairs Come Under Scrutiny by MPs

 

 

The Duchy of Cornwall provides the heir to the throne with a private income

The tax affairs of the Prince of Wales and the Duchy of Cornwall are due to be examined by an influential set of MPs. Prince Charles's most senior official, William Nye, has been called to give evidence to the Public Accounts Committee on Monday afternoon. The committee will consider whether the prince is paying his fair share of tax and explore why the duchy does not pay corporation tax or capital gains tax.

It is only the second time that royal accounts have been examined this way. The last time Prince Charles's representatives came before the Public Accounts Committee they were accused of performing financial "jiggery pokery" and he was said to be the recipient of the "best housing benefit scheme in the world".

This time the committee is fresh from finding the tax affairs of Google, Starbucks and Amazon wanting. The Duchy of Cornwall provides the heir to the throne with a private income. Royal officials argue the duchy is a private landed estate, not a corporation or a public body, so it is exempt from capital gains tax. They also say Charles pays income tax on the money he receives from the hereditary estate after business expenses have been deducted.

Earlier this month, the prince faced calls from Andrew George, the Liberal Democrat MP for West Cornwall, to "come clean" about the Duchy of Cornwall's tax arrangements. The duchy is a £762 million estate of about 131,000 acres, mostly in the south-west of England, from which the prince received a record £19 million last year.

The tax affairs of Prince Charles are about to be scrutinized very closely. MPs will want to explore whether or not £4.4 million  tax on an estate worth £763 million represents a fair share of tax in an age of austerity. The arrangements, where the Duchy of Cornwall is not liable to pay income tax, capital gains tax or inheritance tax because it is subject to Crown exemption, were set in place by the government.

Charles's representatives will experience the heat of persistent questioning at a time when there is a call for greater transparency. Shouldn't someone ( prince or not), with so much more than everyone else....pay more, proportionately?? It just seems fair.