The government has refused to say how many Russians sanctioned because of their links to the Kremlin benefit from UK non-dom tax status, as calls grow to scrap the perk.
Ministers claimed they were trying to “protect taxpayers money” by not revealing the extent of the breaks, an excuse opposition MPs described as “absurd”.
Opposition MPs have sent a series of parliamentary written questions to ministers but were told it would be too much work to provide an answer.
The information is held by HMRC because they know the nationality of people with non-dom status and the identity of people hit by sanctions – but ministers say they could only put it together for release at “disproportionate cost”
“The extensive work that would have been needed to provide the information requested would have greatly exceeded the disproportionate cost threshold for parliamentary questions, as set out in government guidance. This threshold is rightly in place to protect taxpayers’ money,” a government spokesperson told The Independent.
It comes as the Liberal Democrats bring forward a bill which would force the Chancellor and other government ministers to reveal whether they or any member of their household has ever claimed the tax break.
The Independent reported earlier this month that Rishi Sunak’s wife Akshata Murty had the status, a revelation that caused a storm and led to her giving it up.
Under non-domiciled status people resident in Britain do not have to pay UK tax on their overseas earning, but the perk is only available to wealthy people willing to drop a £30,000 fee on the privilege. As a result it only makes financial sense for people with very high incomes.
Labour has called for the status to be scrapped and replaced with a less extensive scheme more in line with other European countries.
Liberal Democrat Treasury Spokesperson Christine Jardine told The Independent: “It’s crucial that the government comes clean on how many sanctioned Russian oligarchs previously benefited from non-dom status.
“The lack of transparency over whether Putin’s cronies were allowed to use these loopholes is staggering.
“It’s also absurd for the government to claim it would be too costly to provide this information, when this is about ensuring people pay their fair share of tax.
“Sunlight is the best disinfectant – the Conservative Government must provide clarity on how non-dom status is being used, and by who.”
