The Observer reports Belize has failed to abide by a global accord to improve international transparency and exchange of information on tax.
Anyone who has visited Belize City, the country's capital, for more than a few hours knows it's a pretty lawless place. Drugs and murder have ravaged the city and brought it to its knees.
But Belize itself is a country of contrasts: while there's terrible poverty and endemic gang crime in the capital, there's also incredible wealth. Billionaires, including Conservative party benefactor and deputy chairman Michael Ashcroft, flock there to take advantage of the glorious sunshine, paradise cayes, and low tax rates.
Who is Michael Ashcroft?
Ashcroft has bankrolled the Tories for the best part of three decades. Yet it would seem he's spent most of that time in Belize. Not only does he own significant property interests there, he's also the chairman of the country's biggest bank.
In 2000, Ashcroft was granted a seat in the Lords after promising to return to the UK and pay UK income tax. It remains unclear, however, whether he ever fulfilled that pledge.
In November 2007 an unnamed person made a Freedom of Information Act request asking the Cabinet Office to release information about Ashcroft's residency and tax status. But in January 2008 the Cabinet Office declined to answer the request, citing privacy concerns.
The person who made the request then asked the Information Commissioner to review the decision.
The Information Commissioner has since chided Ashcroft and other high ranking Tories for failing to clarify his tax status: "Statements by senior politicians concerning Lord Ashcroft's undertaking have been evasive and obfuscatory and have served to compound the speculation," the official watchdog said.
"Lord Ashcroft could have ended the speculation about his residency by making a public statement to that effect. He has chosen not to do this."
Prime Minister Brown added his weight to criticism at the weekend, saying: "It's a scandal that we haven't had proper answers about where the [Ashcroft] money has come from and what the status of this person is."
** Additional information & advice about UK tax law **
You can obtain further information about UK tax law and issues surrounding your residency status on FindLaw.
Alternatively, you may want to speak with a solicitor who specialises in these issues.
You can find a solicitor for free via solicitor matching services, which can also help you to understand the best course of action for your situation and whether you are ready to hire a solicitor.
