Saturday, June 26, 2010

Lord Kinnock Son Accused of Tax Evasion in Denmark

THE TELEGRAPH: The son of the former Labour leader, Lord Kinnock, is being investigated in Denmark over allegations of tax evasion.

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Stephen Kinnock with his wife, Helle Thorning-Schmidt, the Danish opposition leader. Photo: The Telegraph

Stephen Kinnock, who has a home in Copenhagen, is facing accusations that he is attempting to avoid the country's high tax rates.

The scandal has jeopardised his wife's political future as leader of Denmark's opposition Social Democrats.

Helle Thorning-Schmidt, the Danish opposition leader, has now agreed to have her family finances examined by Denmark's Skat tax inspectors in an attempt to clear their name.

Mr Kinnock works and pays tax in Switzerland on a reported income of £110,000 as the World Economic Forum's director of Europe and Central Asia.

The Swiss federal tax rate is just 15 per cent whereas in Denmark, the most taxed country in the world, income taxation can be as high as 63 per cent.

Mrs Thorning-Schmidt has insisted Mr Kinnock has no choice but to pay his taxes in Switzerland, where he works, an argument that has been widely challenged in the Danish media. "We have obeyed the rules," she said.

Mike Legarth, an MP for the right-wing Danish People's Party, has disputed Mrs Thorning-Schmidt's claim that her husband is forced to pay low Swiss taxes rather than the much higher Danish rates.

"We cannot live with a potential prime minister receiving preferential treatment. Everyone should have the same treatment," he said. >>> Bruno Waterfield | Saturday, June 26, 2010