SNP MP accused of hypocrisy over tax avoidance

HMRC urged to investigate after Phil Boswell, who has been campaigning against tax avoidance, benefited from a legal loophole himself

The tax authorities have been urged to investigate claims that an SNP MP benefited from a controversial tax avoidance scheme.

Phil Boswell has campaigned since his election in May against tax avoidance, and was accused of “hypocrisy at the highest level” after it emerged that he had previously taken advantage of a legal loophole.

In August this year, he said the practice cost the economy nearly four times as much as benefit fraud and called on the Treasury to explain how it planned to tackle tax avoidance schemes.

The allegation is a fresh embarrassment for Nicola Sturgeon following the suspension of two other SNP MPs.

James Kelly, Scottish Labour’s business manager, urged HMRC to investigate and said the public had to have confidence that their elected representatives were “playing by the same rules as everybody else”.

He added: “People will be astonished by the apparent hypocrisy of Phil Boswell, with him preaching about the evils of tax avoidance whilst appearing to have taken advantage of a tax avoidance scheme himself.

“We also need a full investigation by the SNP into this case, and an explanation as to why yet another SNP MP appears to be caught up in more financial scandal.”

Lord Purvis of Tweed, the Lib Dem peer, claimed that parliamentary rules appeared to have been breached in “not declaring personal gain when raising, hypocritically, tax evasion schemes in parliament”.

Jackson Carlaw, the Scottish Conservative deputy leader, said: “This was an MP who campaigned to close loopholes that allow high earners to dodge tax bills so clearly, this is hypocrisy at the highest level. He added that the SNP’s vetting procedures had again been exposed as “shambolic”.

Mr Boswell, the MP for Coatbridge, Chyrston and Bellshill, is said to have received an £18,000 interest-free loan from a company associated with a previous tax avoidance scandal.

His register of interests says he benefited from “an interest-free loan of £18,308.82 made by Hyrax Resourcing and now repayable on demand”, in relation to his former role as a contracts manager for an energy company.

Hyrax has links with Peak Performance Professional Contrasts which has helped wealthy individuals, including the comedian Jimmy Carr, cut their tax bills.

Under the so-called K2 tax scheme, high earners would “quit” their job, sign new employment contracts with offshore companies and be paid a lower salary, while also being given “loans” which could be written down as tax liabilities.

Mr Carr apologised in 2012 for using the scheme, which was not illegal, but which David Cameron called “morally wrong”.

Earlier this year, Ms Sturgeon said tax avoidance was obscene, immoral and downright wrong.

Mr Boswell told the Mail on Sunday the arrangement was common practice in his previous industry, adding: “As clearly disclosed in my register of interests,under the conditions of my contract, and entirely at the discretion of my employer, I was entitled to this discretionary interest-free loan.

“After finding myself previously employed in such a contract, I decided to utilise my knowledge and experience in my new role as an MP to highlight treasury management issues.”

An SNP spokesman said: “Phil Boswell has always made declarations on his register of interests in line with IPSA (Independent Parliamentary Standards Authority) guidelines and is committed to ending tax avoidance schemes.”

The MPs Michelle Thomson and Natalie McGarry previously resigned the party whip amid separate investigations into financial activities they were involved in before the general election. Both deny any wrongdoing