Tony Blair Insists That He Does Not Avoid Paying Tax

Tony Blair has admitted taking advice from accountants on establishing a company structure that keeps his business affairs confidential, but insists he does not avoid tax.

The former UK prime minister has revealed that he was advised by KPMG to establish a limited liability partnership for his commercial affairs. Blair's business, political and philanthropic interests are administered by a complex system of companies, operating out of offices in Mayfair, central London.

There are two parallel companies, Windrush Ventures and Firerush Ventures, comprising several limited companies, limited liability partnerships and limited partnerships. But talking to the Financial Times, Blair, who is paid around £3m a year to advise JP Morgan, the US investment bank, and Zurich International, the Swiss-based insurer, insisted that he does not avoid tax. He said: "We spend a fortune every year on lawyers and accountants in order to make sure everything is completely [compliant with the law]."

It also emerged that Jonathan Powell, Blair's former chief of staff in Downing Street, has had his name removed from the list of individuals authorised to act for Tony Blair Associates, his business consultancy which has recently struck a deal with the governments of Kazakhstan. Blair rejected criticism of the contract: "The purpose of this is not to make money, it's to make a difference."

The former Labour leader signalled last week an intention to come back into British politics, five years after resigning as prime minister. And he admitted to the FT that he misses Downing Street. "It is when there are big issues that you want to be there," he said.

Asked what his route back would be, Blair said: "I don't know exactly. Yes, I feel I have something to say. If people want to listen, that's great, and if they don't, that's their choice. I would want to emphasise how fast the world is changing and how incredibly dangerous it is for us to think we can stand still."

Blair also told the newspaper that, while Ed Miliband was "asking the right questions" and he understood why the legacy of New Labour was being questioned, the party would need to stay in the centre ground. "My point," he said, "is that there should not be an after the third way. It is absolutely right now, slap-bang where the world should be."

This article was written by Daniel Boffey, for The Observer on Saturday 30th June 2012 23.27 Europe/London