Labour‘s Shadow Chancellor has demanded Prime Minister Boris Johnson investigate Sajid Javid‘s career in finance and called on him to release his tax records for public scrutiny. Before becoming a politician Mr Javid worked in finance, including at Deutsche Bank in London in its emerging markets division, eventually becoming a managing director. Labour said Mr Javid’s work selling collateralised debt obligations (CDOs) represented the “worst excesses of the casino economy”.
Mr McDonnell also accused the Chancellor being involved in a “tax avoidance scheme” known as “Dark Blue” during his time working at Deutsche Bank.
In a letter to the Prime Minister posted on Twitter, the shadow chancellor wrote: “Mr Javid was employed by Deutsche Bank at the time that this scheme was in operation and is reported by the Daily Mail newspaper to have voluntarily opted into the scheme, including by completing an application form.
“He has not denied his involvement in the scheme and has refused to disclose how much tax he paid.”
The scheme involved offering £91 million worth of shares in a Cayman Islands-registered company called Dark Blue Investments.
Sajid Javid has been urged to reveal his finances by John McDonnell (Image: PA )
Sajid Javid is under pressure from Labour about his previous career in finance (Image: GETTY )
It was litigated in the UK Supreme Court which found “Dark Blue” had no “genuine business or commercial purpose” other than helping shareholders to avoid tax.
Mr McDonnell added: “Every penny avoided in tax by wealthy large corporations is a penny taken from our desperately underfunded public services.
“It critically undermines this Government’s response to the scourge of tax avoidance for the Chancellor to stand accused of this practice.
“Out of respect for the millions who pay their taxes every year and rely on the services public funds provide, I therefore call on you to immediately investigate and clarify any benefit Mr Javid may have received from the Dark Blue scheme, and release his tax records for public scrutiny.”
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Sajid Javid has been attacked by Labour’s John McDonnell (Image: TWITTER )
As global head of credit trading for Asia, Mr Javid sold bonds and complex derivative products, including CDOs – pooled assets, such as mortgages, bonds and loan, that vary in levels of risk.
Entrepreneur Warren Buffet described the bundling and sale of this type of debt as being like “financial weapons of mass destruction”.
Mr McDonell added: “I urge you to reconsider the fitness of Mr Javid to serve in the role of Chancellor and launch an investigation into Mr Javid’s involvement in the trading of CDOs and his involvement in the Dark Blue scheme as a matter of urgency.
“Mr Javid’s widely reported implication in some of the worst excesses of the casino economy, defending the sale of high-risk financial products that contributed the 2008 crisis, calls into question whether he can be trusted with the secure stewardship of the nation’s finances.
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Sajid Javid has come under fire over his previous work at Deutsche bank (Image: TWITTER )
Sajid Javid worked in finance, including at Deutsche Bank in London (Image: GETTY )
“It will not be lost on those that have suffered the consequences of the last nine years of austerity following the 2008 financial crisis that the newly-appointed Chancellor profited from the greed that contributed to it.”
A Conservative spokesman hit back saying Labout was an “absolute disaster”.
said: “Frankly, Labour might want to use the time better thinking about their own credentials for governing.
“Not content with anti-Semitism being rife in their party and their totally incoherent Brexit policy, the only threat to the UK economy is them.
Sajid Javid was a managing director at Deutsche bank (Image: EXPRESS)
“Their reckless plans would see debt soaring as they spend one thousand billion pounds, tax raids on hard-working families and upheaval of our economic system by replacing key posts such as the governor of the Bank of England with their hard-left choices.
“Utter disaster. If any party knows about failure and bogus investigations, it’s them.”
When approached, Deutsche Bank declined to comment.
Sajid Javid has ramped up plans for no deal Brexit (Image: GETTY )
Meanwhile, Mr Javid has ordered HM Revenue and Customs to make no-deal planning its “absolute top priority” in the latest sign of his efforts to prepare for October 31.
The Chancellor has written to HMRC chief executive Sir Jon Thompson demanding action to support businesses and taxpayers and ensure staff and systems are in place to “deliver a functioning regime” on Brexit day.
Sir Jon, who is due to stand down in the autumn, has earned a reputation for publicly spelling out the challenges posed by a no-deal scenario and has received death threats for “speaking truth unto power about Brexit”.
