Probe demand into Levy tax imposter

Lord Levy: Explanation demanded from Sunday Times

The Director of Public Prosecutions is asked to decide whether to prosecute an imposter who called the Inland Revenue claiming to be Lord Levy.

Documents relating to two calls made to the Inland Revenue in June have been passed to DPP David Calvert-Smith.

In recent weeks, millionaire Lord Levy - the prime minister's personal envoy to the Middle East - has featured in several media reports detailing his tax payments.

The two hoax calls came to light during an internal inquiry at the Inland Revenue into the leaking of Lord Levy's tax returns to the Sunday Times. It revealed he had paid just £5,000 income tax last year.

An Inland Revenue spokesman said the Inland Revenue had definitely ascertained that the person who called was not Lord Levy, but declined to say whether the documents passed to the DPP included information on whom the imposter was believed to be.

Lord Levy's North London home

In a letter to Lord Levy Inland Revenue chairman Nick Montagu said the hoax caller had on each occasion provided "detailed and accurate information" which convinced officials he was genuine.

Lord Levy has demanded the Sunday Times reveal its source.

He has said he was the victim of a "vendetta" and that the paper, by highlighting the £5,000 he paid in tax last year rather than the £3.5m he had paid over the past 12 years, was pursuing a deliberate campaign against him.

But The Sunday Times has denied either making the hoax calls or asking anyone else to do so.

Injunction denied

Earlier this week, it defended its investigation, saying the information about Lord Levy had come from a source during a general investigation into tax avoidance.

A spokesman said: "The paper did not make any phone calls impersonating Lord Levy and did not ask anybody to.

"It is a newspaper's job to publish the truth, which we have done, and to disclose information that is in the public interest.

"This was confirmed by Mr Justice Toulson who denied Lord Levy an injunction.

He said it was 'relevant and proper' that his tax details should be published."

The DPP's office said the Inland Revenue's dossier had not yet arrived, and that it was impossible to say what action would be taken until the documents had been examined.