The legal status assumed by the Dutch of Cornwall has been targeted to be “a highly questionable interpretation” by anti-monarchy campaigners to allege that he is evading corporate tax liability Clarence House has however defended the decision later.
These allegations has been leveled against monarchy after similar allegations has been made on corporate entities like Starbucks and Google. While defending the legal status of the monarchy Clarence House has said that there is no legal basis to ask Duchy for paying corporation tax as Duchy is a trust that was set up to generate income for Prince of Wales.
Clarence House said on the issue, “The Prince voluntarily pays income tax on income generated by the Duchy, so there is no legal requirement to pay corporation tax and to do so would result in double taxation.”.
Republic, the institution that campaigns for elected head of state in Britain said they have asked the HM Revenue & Customs (HMRC) to, “take the necessary steps to ensure that the Duchy is paying corporation tax in line with normal practice for corporate entities.”
Republic had leveled the allegations by taking the basis of November 2011 ruling according to which the court ordered the Duchy to conduct environmental assessment of an oyster farm as the court observed that Duchy was a “body or other legal person” which further points in the direction that it has “its own tax obligations”