David Cameron: The Second Biggest Risk to UK Economy

April 8, 2016

Written by Oli
Edited by HV

There is a new risk for the British economy: You can’t believe if the prime minister of the country with the biggest financial hub in the world is telling the truth.

We have the next big victim related to the so-called Panama Papers: David Cameron, and his wife Samantha, profited from shares they had in a Panama-based trust set up by his late father. Is Cameron a real victim of media investigation or is he one of these guys, who are not really criminal but unmoral in relation to their handling with tax-rules?

Cameron, who said in an interview he had nothing to hide, said now he and his wife had 5,000 shares of Blairmore Investment Trust that they sold in January 2010 for about £30,000. “I paid income tax on the dividends. There was a profit on it, but it was less than the capital gains tax allowance, so I didn’t pay capital gains tax,” he said.

If you look at our Sentifi screen of tax evasion, you’ll find a big discussion about what’s going on in London.

Is everything alright? No, it’s not. I have two problems with this behavior of the British prime minister. First, I don’t understand why he said he had nothing to do with Panama’s tax heaven: “I own no shares, no offshore trusts, no offshore funds, nothing like that. And so that, I think, is a very clear description.”

The truth is, that he had something to do with it until 2010, which is what he affirmed now. Should we believe him from now on?

Second, 99.9% of the population has never been in touch with a Panama company. What is the reason for a prime minister to be a part of the 0.1%?

Cameron’s reputation is damaged, but it is not enough for a resignation. Nevertheless, the prime minister is now the second biggest risk for UK economy after Brexit.