One of Britain’s top officials has been allowed to avoid tens of thousands of
pounds in income tax under a deal approved by the Coalition, it emerged
tonight.
Ed Lester, chief executive of the Student Loans Company, was paid through a
private firm he had established rather than being paid direct a tax
avoidance mechanism which could reduce his income tax liability by £40,000 a
year.
The disclosure threatens to undermine Coalition pledges to crack down on tax
avoidance in the private sector and opens ministers up to accusations of
double standards.
The details were uncovered
after an investigation
by the Exaro News website and the
BBC’s Newsnight
programme, which will be broadcast on Wednesday night.
Documents show the deal was signed off by David Willetts, the Universities
minister, who said in a letter that it had been “agreed by the Chief
Secretary to the Treasury” Danny Alexander.
Mr Alexander insisted he did not know that the arrangement allowed him to
avoid tax, and
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