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European Commission plans to make companies reveal tax haven activities

Originally the plan was for big companies to reveal how much tax they pay and where. Credit: PA

The European Commission will respond to the Panama Papers leaks on Tuesday by amending proposed new rules on tax havens.

Under the latest proposals, companies will be forced to disclose their activities in so-called tax havens.

Originally the plan was for big companies to reveal how much tax they pay and where.

Multinationals would disclose how much they paid in each EU state, with the rest of the world treated as a single item.

However the newest proposals have failed to convince everybody, with some campaigners describing them as toothless, owing to the lack of a common view between EU states as to what constitutes a tax haven.

A day of revelations: UK politicians open up their finances

It has been a day of revelations, with some of the UK's most high-profile politicians offering the public a glimpse into their tax affairs.

Chancellor George Osborne released his figures from last year, showing that he earned a taxable income of £198,738 and paid £72,210 in tax.

London Mayor Boris Johnson published four years of records, revealing a total taxable income of £612,583. He paid £260,621 in tax.

Labour leader Jeremy Corbyn revealed that he earned a total taxable income of £72,645 and earned an extra £1,850 from other income sources. He paid £18,912 in tax.

ITV News' Julie Etchingham reports:

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Ed Miliband calls for end to tax secrecy

Former Labour leader Ed Miliband has called for an end to the "secrecy and abuses" of tax havens.

Speaking on ITV's The Agenda with Tom Bradby, Mr Miliband called for sweeping changes to the UK's tax policy, including ending non-domiciled status, which allows some British citizens resident abroad to limit the tax they pay on foreign earnings.

"We go on about Panama - the top country in the world for tax avoidance is the UK," he said.

Mr Miliband also stood up for David Cameron, who has faced intense criticism over benefiting from his father's investment fund.

"I understand the prime minister defending his father and I understand it was upsetting for him," he said.

PM and chancellor 'should publish full tax return'

Shadow Chancellor John McDonnell Credit: PA

The prime minister nor the chancellor have published their full tax return but just a summary that leaves more questions, the shadow chancellor said.

Chancellor George Osborne published his tax return after the prime minister urged him too amid a row over his personal finances.

This has been a distraction not a true disclosure. Neither the Prime Minister nor the Chancellor has published their full tax return like myself or the Leader of the Labour Party.

Instead they have provided a summary that leaves more questions than answers, which strikes me as an odd approach and is as transparent as dish water.

– Shadow Chancellor John McDonnell

Cameron challenged MPs over father's investment fund

David Cameron took on MPs to defend his father and his offshore fund in the House of Commons.

The prime minister argued the fund was set up to trade in dollar securities and "there are thousands of these investment funds".

The prime minister added: "The BBC, the Mirror Group, Guardian newspapers and to pick one council entirely at random, Islington Council, all have these sorts of overseas investments".

ITV News Political Editor Robert Peston reports:

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Corbyn: Public no longer has trust in Cameron over tax

Credit: House of Commons

Jeremy Corbyn claims the public "no longer trusts" the Prime Minister after the tax affairs row.

Dismissing Cameron's statement as a "masterclass in the art of distraction", he accused the PM of failing to realise how angry people are over the "national scandal".

Addressing the Commons, he said: "We've gone through six years of crushing austerity; families lined up at food banks to feed their children, disabled people losing their benefits, elderly care cut and slashed, living standards going down.

"Much of this could have been avoided if our country hadn't been ripped off by super rich refusing to pay their taxes.

"I say this to the Prime Minister; ordinary people in the country simply won't stand for this any longer.

"They want real justice, they want the wealthy to pay their share of tax like they pay when they work hard all the time."

Labour leader Jeremy Corbyn publishes tax return

Corbyn was fined for sending his tax return in late. Credit: PA

Labour leader Jeremy Corbyn has published his tax return for the last financial year.

It showed he declared £1,850 of additional income beyond his Parliamentary salary.

He was also fined £100 for submitting his 2014/15 tax return after the deadline, Corbyn's spokesman said.

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