Lord Ashcrofts non-dom status shocked peerage vetting committee

By Rosa Prince, Political Correspondent 443PM GMT eighteen March 2010

William Hague and Lord Ashcroft

Labour"s Baroness Dean pronounced she was "surprised" to sense of the millionaires loyal taxation status, carrying insincere that the "undertakings" he gave to the Lords Scrutiny Committee 10 years ago meant the Conservative donor would proceed profitable UK taxes on his large abroad earnings.

Meanwhile Sir Hayden Phillips, the comparison Whitehall mandarin who oversaw the routine of awarding Lord Ashcrofts peerage, additionally confessed that he had not well known the disproportion in between being domiciled and non-domiciled for taxation purposes.

William Hague I done mistakes over Lord Ashcroft event Lord Ashcroft trusted letters analysed Lord Ashcroft taxation explain a mistake, says Hague Labour indicted of arrange pomposity Ashcroft "avoided �2m taxation on Tory donations" William Hague I did not know Lord Ashcroft was a non-dom

Both were giving justification prior to the Commons Public Administration Select Committee, that hold a conference in to Lord Ashcroft event that was boycotted by the Conservatives.

Sir Hayden told the cabinet that he had been usually a "little bit surprised" to sense this month that Lord Ashcroft had remained a non-dom, adding that he had deliberate it his main shortcoming to safeguard that the Tory donor would do his duties in the Lords.

Asked either she had been astounded and repelled by new events, Lady Dean pronounced "Yes. We thought that the undertakings that he had given, transparent and unequivocal, to us ... were celebrated

"We were ceaselessly of the perspective that Lord Ashcroft would say his endeavour to take up permanent residence.

"It looks similar to the commitments and undertakings given were not carried through."

Sir Hayden pronounced that it had not been done "explicit" to him by the inspection cabinet that concerns remained about Lord Ashcrofts status, and certified that he had unsuccessful to discuss it the Conservatives of this during the extensive negotiations using up to the extenuation of the peerage.

He told the cabinet "If it had been done pithy to me that I, in my surrogate role, should go behind to the Conservative care observant we need a serve commitment, afterwards the story competence have been different."

"If you are observant there was a disagreement about what the undertakings pragmatic ... afterwards that competence well be the case.

"That is where the system, as it were, did not finish what, with hindsight, people"s expectations were."

Lord Ashcroft and William Hague, the shade unfamiliar cabinet member who was Conservative personality at the time that the nobility was granted, declined to give justification prior to the committee.

Lord Hurd, who sat on the Public Honours Scrutiny Committee to one side Lady Dean, additionally unsuccessful to attend, whilst the third member, Lord Thomson of Monifieth, who was the authority at the time, has given died.

The 3 Tory members of the cabinet refused to take piece in the hearing, claiming that it was politically motivated.