Prince v Public Accounts Committee
The Duchy of Cornwall has come under the sharp scrutiny of the Public Accounts Committee (PAC). Its members want Prince Charles to open up its books for inspection. The Prince has, not surprisingly, refused. His stance can be summarised as follows:
'I already pay income tax voluntarily on my income from the Duchy, what more do you want?'
To which the PAC replies:
''We want to know why you don't pay corporation tax and capital gains tax.'
To which he replies:
'The Duchy is not a company, so it doesn't pay corporation tax. Besides, I am taxed on the income, so expecting the Duchy to pay corporation tax would mean a double charge. And as for capital gains tax, I have no rights to any profits from any property the Duchy sells, as I do not own the property, so why should I pay?'
The PAC replies:
'But as the Duchy engages in commercial interests, it will be having an unfair advantage over its competitors if it is exempt from tax, which its competitors have to pay'.
About which Prince Charles thinks (but does not say):
'That's because it has royal status. Tough!'
At which point the Treasury steps in and says,
'let's have no more of this nonsense, children. The tax position of the Prince and the Duchy should stay as it is.'
And the PAC withdraws. For the time being.
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