Ed Miliband has said there is nothing wrong with Ken Livingstone tax avoidance measures. “Ken Livingstone has paid every pound of tax he is required to by law,” says Mr Miliband.
But will the HMRC agree?
Mr Livingstone has used revenue from his company Silveta Ltd to employ people for his election campaign. But as Guido Fawkes says:
"He has almost certainly broken the laws regarding company expenses allowable against corporation tax. To be offset against tax company expenses must be 'wholly, exclusively and necessarily' incurred 'for the purposes of the company'. HMRC should take a very close look at Silveta Limited."
I have emailed to ask HMRC what they are going to do about this.
“HMRC cannot comment on individual taxpayer affairs, because of our statutory duty of confidentiality.
"HMRC guidance advises that, to be an allowable deduction against CT profits, an expense must be incurred wholly and exclusively for the purposes of the trade.”