Sajid Javid has denied seeking to avoid a huge tax bill when he gave a mysterious loan to a business started by his brother amid a call for an investigation.
Labor has called for an investigation into the health minister’s ties to a company called SA Capital, accusing him of “hypocrisy” as the government raises public taxes.
The controversy focuses on how £ 585,000 of almost £ 1 million has been provided for the company, which Mr Javid has briefly co-owned with his brother and their respective wives.
Labor has suggested that “the purpose of the loans was to ensure a tax-efficient way for offshore money to enter the UK” and that it “potentially avoids paying hundreds of thousands of pounds”.
He asked the tax authorities to investigate – despite loans granted 20 years ago – because politicians should not be “above the law when it comes to paying taxes”, the letter said.
Asked if he had avoided “hundreds of thousands of pounds in taxes before entering politics”, Mr Javid told Sky News: “No, of course not.
“These are typical Labor, you know, personal attacks on people. And that’s what Labor does when they have nothing to say about the real issues that are being addressed. “
He added: “About 20 years ago, did I invest in my brother’s business to help him start a new business? Of course I did, and I don’t think there’s anything wrong with that.
“I think this is something that many people will do to help their siblings or loved ones start their own business or business. And that’s all there is to it. “
Mr Javid was then pressured whether “there is no way money can come from offshore companies without paying tax on it”, but refused to answer.
The health secretary has also been criticized for using his homeless status to reduce his tax bill in the UK – although, being a UK-born international banker, he has doubts about his entitlement to the privilege.
Wes Street, Labor’s shadow minister, said: “I wrote to the HMRC calling for an investigation into Sajid Javid’s tax evasion.
“Conservatives are happy to raise taxes on everyone else, but not to pay their own. Hypocrisy stinks. ”
Controversy is seen as detrimental to Mr Javid’s chances of challenging the Conservative leadership if Boris Johnson is forced to step down.
The health minister also tried to clear up the confusion about his much-ridiculed warning that the country had a “blockbuster health system in the Netflix era.”
He assured people that they would not have to start paying an “subscription” to the NHS, saying he meant the service needed to be upgraded.
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