LORD Laidlaw, Scotland's second-richest man and one of the Tory donors questioned in the cash for peerages inquiry, has embroiled the Conservatives in a fresh scandal after it emerged he failed to give up his status as a tax exile.
The philanthropist who lent £3.5 million to the Tories has been forced to explain to the Lords Appointments Commission his "personal reasons" for remaining a tax resident in Monaco despite a promise three years ago that he would become a UK resident when he was given a peerage.
There was speculation that the decision could be for health reasons.
Lord Laidlaw has also promised to give away most of his fortune in the coming months through his charitable foundation. In his letter to the watchdog, he said he would become domiciled in the UK.
However, the Lords Appointments Commission is still planning to "name and shame" him in a forthcoming report, as before becoming a peer in 2004 he pledged to give up his off-shore status.
The rules were changed the following year to block anyone being nominated for a peerage who was not domiciled for tax purposes in the UK.
A spokesman for the Conservative Party said that, despite the peer's personal status, all of his donations to the party were made through UK-based companies and had been approved by the Electoral Commission.
Lord Laidlaw of Rothiemay was one of four major donors to the Conservative Party questioned by police investigating cash for peerages claims, along with Robert Edmiston, Lord Ashcroft and Johan Eliash.
This year's Sunday Times Rich List placed him as Scotland's second-richest person, said to be worth £730 million.
A spokesman for Lord Laidlaw refused to reveal the reasons he had given the watchdog for his failure or to say how long it would be before he met the requirement.
Lord (Tim) Bell, the PR entrepreneur, said his client was "mindful" of his obligations and intended to fulfil them.
Lord Laidlaw's spokesman also signalled that the peer was speaking to the Inland Revenue about his status. "He is in discussions at the moment; nobody knows what the outcome will be.
"
Pressed on the explanation given to the commission, he said: "We are not divulging any of the private information."
But opposition parties have placed pressure on David Cameron, the Tory leader, to discipline the peer.
On the campaign trail in Kent, Mr Cameron hinted at his displeasure.
"Obviously, Lord Laidlaw made some undertakings to the House of Commons," he said.
Edward Davey, chief of staff to Lib Dem party leader Sir Menzies Campbell, questioned Lord Laidlaw's legitimacy to be a working peer. "If someone is making laws for this country, surely they should pay tax in this country?
" he asked.
Hazel Blears, the Labour chairwoman, said: "This raises serious questions about Cameron's leadership. Did he know?
What is he going to do about it? Does Lord Laidlaw's loan count as an overseas donation, which is against the rules?"
• IRVINE Laidlaw has almost single-handedly kept the Scottish Conservative Party financially afloat since its demise in the post-Thatcher era.
Born in 1943 in Keith, Moray, the businessman started the Institute for International Research, which he sold for more than £770 million in 2005. He said of the sale of his business: "I always wanted to be successful and you can't be a successful businessman without being rich."
Lord Laidlaw, who was ennobled in 2004, helped save the English National Opera with a £2 million donation last year and he has given cash to individual schools.
However, he fell out with the Scottish Executive over its plans for schools, rejecting them as not ambitious enough, like the controversial city academy scheme in England.
He owns what is believed to be South Africa's most expensive house but divides his time mainly between his seaview apartment in Monaco and Scotland.
His passions include yachting, and he has twice won the Key West Regatta in Florida on his Swan 60 cruiser-racer, Highland Fling.
Cars are another hobby, and he regularly races his Porsche 904GTS, Porsche 904/6, Maserati 250S and Maserati 6CM.
I cant believe the Ming Campbell and the Lib Dems have the cheek to even comment on this after their largest donor turned out to be a criminal living overseas !
Now this loan if not repaid is a donation of £3.
5 Million. Do different rules not apply?.
Its OK however...
dodge the problem and repay it!
Health reasons for staying in Monaco ? .
. and presumably this does not interfere with the yatch car racing ..
and to think poor old david mcletchie was plugging away with taxis into the unknown.. while his backer has maseratis porsches
Add what about 007?
Will the blessed Sean return to his nation and pay back-taxes to kick start the new republic's economy?
The usual Westminster farce. It sounds like a movie script.
lent £3.5 million hahahaha does that mean he will want it back or more than likley something in return.
Just goes to show you cant trust anyone these days maybe its time for a totally different way of being goverened.
Best thing to do is become independant then those south of the border can elect as many idiots as they want to the house of Lords.
Its all totally scandalous if that were me or anyone else we would be up on charges of evading tax and stuck in prison for a thousand years, funny how those being jailed for tax evasion are given heavier sentences than those who molest children.
I really cant understand why the guy should have to live in the UK, People have the right to move about as and where they want, as enschrined in the EHRA.
Its just pc crap gone bonkers, so hes got a peerage big deal, it would seem that half of these guys dont vote anyway. Lord Hattersley makes several hundred grand a year is a peer and doesnt vote. My view is it is a case of not where you live but do you participate.
If you dont do the latter you should be disbarred.
TheLords Appointments Commission , thats a laugh in itself.
The so called house of lords should have been done away with years ago.
And this tax dodging rich git should have his title stripped.
Personally, I will never tip my cap or bow down to any of these so called lords or royals.
When did Sean Connery get his Lordship?
When did Sean Connery give an eternal loan (a donation in disguise)...
..In a free Scotland the second chamber must be democratic and small enough to be effective.
It's time to make the Lords wholly elected by the people. The patronage system was always open to abuse, but since Labour have been in power they and the Tories seem to be competing over who can corrupt it the most.
Lord Laidlaw,wait a mo.
I would be ever sooo happy to pop over to the sea view apartment in Monaco,and help you spend the fortune.I could be the charity case of all charity cases.Promise to do my best.
Should Sir Alex Ferguson give up his overpaid job at Man Utd. and return to Govan? Should that other Labour mouthpiece, the fine actor Brian Cox leave sunny California and return to Dundee?
The answer is No and No and Dr No.
People are entitled to live where they choose. The issue here is a man who can make laws for the UK and indeed be a member of the highest appeal court in Scots Law, is neither a resident of the UK nor does he pay UK tax.
(What's that about paying pipers and calling tunes?)
First the donation to the Tories, then the ermine robe, and now this for Cameron. Someone should tell the Toff about that German saying, First the favour, then the pain.
Lang may he suffer it.
Pales into insignificance compared to the non-stop corruption of the labour party, on both sides of the border. Trash like this will not put anyone off , if theyare thinking about voting conservative.
It would after all mean a reduction in political corruption.
Lets forget the fact that this man got his peerage for services to the tories (not Britain) but does not want to pay taxes in the country where he is enobled even though he promised to change his tax exile status when accepting the peerage.
Forget all that as it's par for the course with the tories, the inaction of the tory party on this matter shows that Tory Lite under AC/DC is no different from the old tories.
...
one rule for you, another rule for us and our kind...
I can't see what the fuss is about. Who cares where he lives?
The fact that he chooses to live in Monaco is simply testiment to the fact that the taxes in this country are too high.
Testimony to the fact he is a liar.
His peerage was granted on the understanding he would become a UK resident - which seems fair since he was beign elevated to becoming a UK legislator.
Another example of tycoons fundlign elections.
Another reason for state funding of political candidates expenses - refundable against limited and legitimate expenses.
As that geezer suggested - maybe say £1 per vote.
Anyone who thinks their vote is worth less than a £1 would be happy living dictatorship.
#11 Would that be Sir Sean? Taxes both direct and indirect are far too high in this country anyway!
#18
I think you may find that his peerage was granted if he donated money to the Tories.
The fact that he has been able to be legislator for 3 years without anytone bothering him says all you need to know about this situation.
A verbal undertaking between Gentlemen to become a British Taxpayer..
. yeah right.
A) he may be thinking of getting divorced and his Wife would get nearly half his fortune in the UK?
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