Former City Index magnate David Buik jumps to David Cameron’s defence in PM’s offshore tax scandal
British Prime Minister David Cameron’s current embroilment in being the subject of much finger-pointing by the public with regard to his alleged avoidance of tax via an offshore fund which was exposed in the Panama Papers has attracted the attention of David Buik, former City Index and BGC Partners senior executive. Mr. Buik, whose 49 […]
British Prime Minister David Cameron’s current embroilment in being the subject of much finger-pointing by the public with regard to his alleged avoidance of tax via an offshore fund which was exposed in the Panama Papers has attracted the attention of David Buik, former City Index and BGC Partners senior executive.
Mr. Buik, whose 49 year career in the City culminated in relative fame and near-public figure status, has commented that Prime Minister Cameron acted with the “utmost financial probity” by using Blairmore Holdings, and offshore investment fund which was established by Ian Cameron, the Prime Minister’s father.
Prime Minister Cameron’s use of Blairmore Holdings was revealed in last week’s leak of over 8 million documents in the Panama Papers, which revealed the fiscal affairs of dignitaries, leaders of countries and very wealthy private individuals from across the globe.
Public discourse against Prime Minister Cameron’s use of the Blairmore Holdings fund stems from the revelation that he held shares in the company between 1997 and 2010, selling them for around £30,000 shortly before becoming prime minister.
The Panama Papers leak revealed that the prime minister’s late father, Ian, had the “unit trust” fund, which has been a very common investment method in the UK since it was invented by Allied Dunbar founer Mark Weinberg in the 1980s.
In terms of functionality, a group of people pool their money (by buying shares, or units, of the total value of the fund) and use it to invest in a variety of securities, spreading the risk.
This particular fund’s incorporation offshore, initially in Panama, was seemingly motivated by administrative convenience rather than tax-dodging: the Camerons paid British taxes on their income from it.
Whilst absolutely no evidence has emerged suggesting that the prime minister’s family broke any rules, mass demonstrations by angry leftist groups have been taking place outside 10 Downing Street over the last few days, some participants representing the Socialist Worker, an oxymoron indeed.
In addition to this measure, the Prime Minister published his tax reports which detail that he inherited £300,000 when his father passed away, and received two payments of £100,000 each from his mother whilst he was in office.
The tax returns which have been published this weekend cover the period during which Mr. Cameron has been Prime Minister, and show that in addition to a salary of £142,000 he had rented out his family home for four years, netting £40,000.
David Buik wrote in his email to his followers this morning ““For the avoidance of doubt, David Cameron, as far as I can see, has not broken any rules, nor avoided tax illegally and frankly he appears to have behaved with the utmost financial probity.”
Mr. Buik then wrote off the global taxation system as a ‘farce’ and saying that if it is not reformed, “Tax avoidance schemes will still rule.”
Additionally, Mr. Buik took a swipe at those who fail to understand the importance of making money and generating prosperity.
“Creating wealth is not a dirty pastime. Wealth creates jobs. I cannot understand why so many of the so-called intelligentsia do not comprehend this fact” – David Buik.
Although Mr. Buik retired in 2011 from his 12 year tenure at BGC Partners, he continues to provide financial insights on a regular basis in the public domain. His days at City Index at the beginning of the 30 year old firm’s establishment in London resulted in his television career in later life, which he still enjoys today.
This came about by having been approached by Martin Belsham, former CEO of City Index, much after his departure from the company. Mr. Belsham, a good friend of Mr. Buik was at the time working for Michael Spencer and was in charge of Blue Square and City Index, and was seeking to get into public relations, so as a result, Mr. Buik is now a widely recognized commentator across a number of British media channels.