The files include allegations that the Queen's private estate secretly invested huge sums of cash in tax havens

The Queen is being shamed to take the heat off true tax 'hypocrites' after the Paradise Papers revealed £10million of her cash was ploughed into an offshore fund, royal experts said today.

The dossier says cash was secretly funnelled to the Cayman Islands and Bermuda and revealed Bono, members of Donald Trump’s cabinet and businesses including Apple and Facebook also invested in tax havens.

Royal officials have said she had no direct involvement in the investments and they are 'not aware of any tax advantages'.

Today Jeremy Corbyn suggested that anyone on the list - including the Queen - should apologise.

Dickie Arbiter, the Queen's former press secretary, told MailOnline: 'The Queen’s done nothing wrong and she’s got nothing to apologise for.

'The Queen is being knocked to take the heat of others.

He added: 'The money has been invested by the Duchy of Lancaster – not her – and the money doesn’t go in her pocket’ and would be used for the upkeep of palaces and pensions for retired staff.

Mr Arbiter said her tax affairs being front page wouldn't be ‘uncomfortable’ for the Queen because ‘anyone with an ounce of financial nous knows profits coming into the UK from offshore is taxed at the full whack’.

Fellow royal expert Phil Dampier said that it was completely wrong that there was 'focus on The Queen - who probably knew nothing' while 'letting hypocrites like Bono off the hook'.

Labour MP Dame Margaret Hodge, the former chairwoman of the Commons Public Accounts Committee, said she believed the Queen would be horrified to learn how her funds had been invested.

Her offshore investments emerged in a huge data leak of 13.4million confidential documents reveals the cash was secretly funnelled to the Caymans and Bermuda.

Dame Margaret said: 'I think the Queen herself would be completely shocked to find her advisers have used tax havens in which to invest their money and that her reputation has been sullied by the actions of the tax advisers'.

Among the more bizarre revelations is that U2 frontman Bono used a company based in Malta to invest in a Lithuanian shopping centre

Donald Trump's commerce secretary Wilbur L Ross Jr, pictured behind the US President, is revealed to have a stake in a firm that deals with Russians who are under sanctions

A massive data leak has revealed that Commerce Secretary Wilbur Ross (left) has significant business ties to a Russian oligarch and President Vladimir Putin's son-in-law. US secretary of state Rex Tillerson is named as a director of an offshore firm

She told the BBC's Today programme: 'Tax havens aren't just repositories for people to hide their wealth. They are also repositories for money laundering, for organised crime, bribery and all sorts of nefarious acts'.

What is the Queen's Duchy of Lancaster Estate? The ancient Duchy of Lancaster is the Queen's private estate and provides her with much of her income. It covers more than 18,400 hectares of land in England and Wales, made up of farm land, commercial and residential properties - mostly in Lancashire, Yorkshire, Cheshire, Staffordshire and Lincolnshire - and also limestone and sandstone quarries, and foreshores. It also has a portfolio of financial investments, including equities, bonds and other investments, currently with a capital valuation of £70.5 million. The Duchy controls £519 million of net assets and we have now learned some cash has been invested offshore. Strictly speaking, the Duchy is not owned by Elizabeth II. It belongs to the Queen only in her public role as sovereign. The Queen voluntarily pays tax on any income she receives from the Duchy. Advertisement

Theresa May has said individuals and businesses should 'pay the tax that is due' as the financial affairs of the global elite were laid bare today.

Shadow Chancellor John McDonnell said he was 'shocked but not surprised' by the industrial levels of cash being invested offshore - and said the public would be 'outraged' by the leak.

Calling for a public inquiry he said: 'The super rich are avoiding paying their taxes like the rest of us and, as a result of that, not funding our public services'.

Royal officials insisted last night they were 'not aware of any tax advantages' and the Queen had no direct involvement.

U2 star Bono, members of Donald Trump's cabinet and some of the world's biggest firms including Facebook are also named.

The cache of documents reveals Trump's Commerce Secretary Wilbur Ross has significant business ties to a President Vladimir Putin's son-in-law, while Russia funded Facebook and Twitter investments through an associate of Jared Kushner, the US President's son-in-law and advisor.

US secretary of state Rex Tillerson is named as a director of an offshore firm behind a billion-dollar oil and gas enterprise in the Middle East.

The financial documents, which will be released throughout this week, show that:

The Queen's money was invested in BrightHouse, a hire-purchase retail company accused of exploiting poorer households;

Her cash also helped prop up Threshers, the now-defunct off-licence chain;

Bono used a firm in tax-haven Malta to buy a shopping centre in Lithuania. Madonna named as having shares in a medical supplies company and Keira Knightley said to have invested in a Jersey-based property company;

Kremlin-controlled firms invested in Facebook and Twitter via a business contact of President Trump's son-in-law;

Mr Trump's commerce secretary Wilbur Ross has a stake in a firm with ties to Vladimir Putin's son-in-law;

Russian billionaires used offshore network to buy shares in Everton and Arsenal;

Theresa May resists calls for public inquiry into offshore tax but says: 'We want people to pay the tax that is due'

The Queen's income comes from the Duchy of Lancaster, a private estate which was set up in 1399 to generate a financial return for the reigning monarch. It manages land and investments held in trust for the monarch and the assets are worth £519million according to its latest accounts.

According to the leak, the Duchy has used offshore private equity funds designed to shield UK investors from having to pay US tax on their holdings.

Leaked to a global consortium of media organisations including the BBC and the Guardian, the Paradise Papers show that £10.7million of the Queen's private money was invested in funds in the Cayman Islands and Bermuda.

A sum of £5.7million was invested through a Cayman Islands fund named Dover Street VI Cayman Fund LP. The Dover Street fund invested about £3,000 of the Queen's money in BrightHouse, which has 270 stores.

Paradise Papers names royalty, politicians and the rich and famous The 13.4million confidential documents reveal some of the world's richest, most famous and most influential people allegedly invested in a Cayman offshore fund. The leak names: Royalty and heads of state past and present Queen Elizabeth II President of Colombia Juan Manuel Santos, Ex-German Chancellor Gerhard Schröder Former Prime Minister of Pakistan Shaukat Aziz Former Prime Ministers of Canada Jean Chrétien, Paul Martin and Brian Mulroney US officials Wesley Clark, former presidential candidate Gary Cohn, director of the National Economic Council Cabinet officials Blairo Maggi and Wilbur Ross Rex Tillerson, Secretary of State Stars Madonna and Bono Big business Allianz, Bayer, Siemens, Glencore, Apple, Facebook, McDonald's, Nike, Uber, Walmart and Yahoo! Advertisement

It has been accused of exploiting the poor, by offering them hire-purchase deals to buy goods such as washing machines but effectively charging them double the shop price when loan interest is included.

The firm has been under investigation by the Financial Conduct Authority, which last month said it was not a responsible lender.

The Dover Street fund also invested in Threshers, the chain of wine shops which went bust in 2009 owing £17.5million in tax and costing almost 6,000 workers their jobs.Another £5million was invested by the Duchy of Lancaster in the Jubilee Absolute Return Fund, which invests in hedge funds.

At the time of the investment in June 2004, the fund was based in Bermuda. The Duchy sold its stake in 2010. There is nothing illegal in the investments and no suggestion that the Queen is not paying tax, or had any knowledge of the specific investments.

The Duchy said it was not involved in decisions made by funds. But questions will be asked as to whether the monarch should be investing offshore. Buckingham Palace declined to comment last night and referred all inquiries to the Duchy.

A Duchy spokesman said: 'We operate a number of investments and a few of these are with overseas funds. All of our investments are fully audited and legitimate.

'The Queen voluntarily pays tax on any income she receives from the Duchy.'

The Duchy's chief finance officer, Chris Adcock, told the Guardian it had been unaware of the indirect holding in BrightHouse.

He said: 'Investors commit to a fund for a given period and are not party to its ongoing investment decisions.'

He added: 'We are not aware of any tax advantages to the Duchy in investing in offshore funds. The Duchy's investment policy is based on advice and recommendations from our investment consultants and asset allocation, rather than tax strategy.'

But Labour MP Meg Hillier, chairman of the public accounts committee, told the BBC's Panorama: 'We need to see what's going offshore. If offshore was not secret then some of this stuff just couldn't happen. We need transparency.'

Theresa May claims the government are doing more to clamp down on tax avoidance, but refused Labour's call for a public inquiry.

Downing Street said Mrs May did not have any direct offshore investments and that her assets were held in a blind trust, in line with normal practice for ministers.

'There is a well-established set of procedures and mechanisms,' the Prime Minister's official spokesman said.

'The Prime Minister has a blind trust. That is well-documented. That is a means of protecting the Prime Minister and other ministers in the handling of their interests.

'The PM has got no direct offshore investments.'

Paradise Papers Q&A: Millions of leaked secret corporate files that raise serious questions about the tax affairs of the rich and powerful What are the Paradise Papers? More than 13 million leaked secret corporate files, about half of which belong to offshore law and corporate services provider Appleby, which has ten offices around the globe. There also documents from corporate registries in 19 tax havens. These are mostly Caribbean and Atlantic islands such as Bermuda, Grenada and the Bahamas, but also include Malta, Lebanon, Labuan (an island territory in Malaysia), Samoa, Vanuatu, the Cook Islands and the Marshall Islands. They cover the period between 1950 and 2016. Is this the same as the Panama Papers? The Panama Papers involved millions of files leaked from Panamanian law firm Mossack Fonseca, showing how some of their clients laundered money, dodged sanctions and avoided tax. This is a separate leak, although will raise many of the same questions. Who got the documents, and how? The German newspaper Suddeutsche Zeitung obtained the files and shared them with 95 other media organisations around the world. In all, 381 journalists in 67 countries have been analysing the material for one year. Suddeutsche Zeitung has not revealed its source. What do the leaks contain? Documents outlining the tax and financial affairs of hundreds of people and companies connected to Appleby and the 19 tax havens, with many appearing to have invested or sheltered huge amounts of cash in offshore tax havens. Who do they involve? Multinational companies, wealthy individuals, heads of state, politicians and sports stars from around the world, including many from the UK. Some of the biggest names to emerge so far include the Queen, Facebook and Donald Trump's cabinet members and advisers. Why is it controversial to put money offshore? Offshore tax havens typically offer low or zero tax rates to non-residents who keep money there. Experts estimate that around $10 trillion (£7.6 trillion) is held offshore around the world. That money would potentially otherwise be taxed in the owner's home country, meaning governments are potentially missing out on billions in revenue. Critics also say the secrecy makes it easy for companies to hide wrongdoing. Will this cause a row about tax avoidance? Further evidence of the extent of cash being held in tax havens is certain to spur anger and calls for a crackdown on tax avoidance practices. However, recent leaks including the Panama Papers may have created a certain level of 'leak fatigue', denting the documents' impact. Advertisement

Last year Iranian businessman Farhad Moshiri sold his 15 per cent stake in Arsenal FC to Russian Oligarch Alisher Usmanov (pictured) and used the money to buy a 50 per cent stake in Everton. But secret documents leaked to the press suggest his original stake in Arsenal was funded by a 'gift' from Mr Usmano

Labour has said a public inquiry is urgently needed to restore public confidence in the tax system.

Shadow chancellor John McDonnell told BBC Radio 4's Today programme: 'These papers have revealed widespread massive tax avoidance.

'To have such a large number of rich individuals avoiding their taxes means that we don't have our taxes to pay for vital public services like the NHS, like education, like the care of our children by local councils.

'We called for a public inquiry 18 months ago into tax avoidance and we desperately need it now to restore confidence in our taxation system.'

The Paradise Papers also prompted questions for Tory donor Lord Ashcroft. The BBC said the papers showed he had retained his non-dom status while in the House of Lords, despite reports he had become a permanent tax resident in the UK.

The Guardian said the peer, 71, had a previously unknown trust 'sheltering his vast overseas wealth'. Lord Ashcroft's spokesman Alan Kilkenny said the peer had never engaged in tax evasion, abusive tax avoidance or tax avoidance using artificial structures, and 'any suggestion or implication that he has will be vigorously challenged'.

The Panama Papers revealed last year how Vladimir Putin's inner circle and other world leaders used tax havens.

The explosive details have come from the company registries of 19 tax havens and has been obtained by the German newspaper Süddeutsche Zeitung and investigated by 100 media organisations across the world.

Just weeks ago offshore law firm Appleby - which is at the centre of the scandal - revealed its data centre in Bermuda had been compromised in a cyber attack.

The breach is thought to have been the precursor to today's enormous leak which implicates influential figures from across the world.

Three stars of the Mrs Brown's Boys sitcom allegedly piled £2million into an offshore fund in Mauritius, the Paradise Papers also revealed.

Paddy Houlihan, who plays Agnes Brown's son Dermot on the BBC hit, says he had to Google 'tax avoidance' after a Panorama reporter called him in October over his investment.

Mr Houlihan claims joined the Mauritius scheme after advice from British accountant Roy Lyness - who also advised Jimmy Car - but said he 'never knew what the f*** was going on' with his money.

Fiona O'Carroll, who plays Maria Brown (far left), Paddy Houlihan who plays Dermot (second left) and Martin Delany, who plays Trevor (fifth from left with glasses) are named in the Paradise Papers. Mrs Brown's Boys star Brendan O'Carroll is not involved

Mr Lyness also does the accounts for the Mrs Brown's Boys global operation - but Brendan O'Carroll, who plays Mrs Brown, did not use the Mauritius scheme.

However Mr O'Carroll's daughter, Fiona O'Carroll, who plays Maria and her husband, Martin Delany, who plays Trevor, have been named as members of the scheme.

Co-stars Amanda Woods, who plays Betty, and her husband Danny O’Carroll, reportedly signed up but did not invest, according to the Irish Times.

Mr Houlihan said he Googled tax avoidance when a BBC reporter contacted him last month

Mr Houlihan told the newspaper: 'I was told the money went to a trust and it wasn't mine until I received it, and I didn't have to pay any tax until I got the money. I was in control of when I would pay tax. The first thing I thought of was the Jimmy Carr thing but I was told it was fully legal.

He added: 'It wasn't about dodging the tax. I wanted to pay the tax', and said that now all he wants is to 'pay my taxes and live freely the way it was up until I got the phone call [from Panorama].'

In 2012 Jimmy Carr made a grovelling apology about his tax affairs and said he had made a ‘terrible error of judgement’.

He had been one of thousands using a legal off-shore scheme to pay as little as one per cent income tax. He is believed to have been the largest beneficiary of the K2 accountancy arrangement, said to shelter £168million a year from the taxman.

Mr Lyness was said to have marketed the scheme - he refused to respond to Mr Houlihan's claims, according to the Guardian, but said 'all income from any source had been taxed as appropriate'.

Fiona O'Carroll, who plays Maria and her husband, Martin Delany, who plays Trevor, have been named as members of the scheme

Questions have been raised over who controls Everton FC after the complex offshore dealings of two billionaires were laid bare in the documents.

Last year Iranian businessman Farhad Moshiri sold his 15 per cent stake in Arsenal FC to Russian Oligarch Alisher Usmanov and used the money to buy a 50 per cent stake in the Merseyside club.

But secret documents leaked to the press suggest his original stake in Arsenal was funded by a 'gift' from Mr Usmanov raising questions as to whether the Russian's money is now in Everton.

It was also revealed that Canadian prime minister Justin Trudeau's top fundraiser and senior adviser Stephen Bronfman, heir to the Seagram fortune, moved $60million to offshore tax havens with ex-senator Leo Kolber.

There is no suggestion that those named in the documents have done anything illegal.

However, it will pile pressure on leading politicians including British Prime Minister Theresa May who has strongly spoken out against tax avoidance in the past.

Today's revelations are only the beginning of the scandal - with more figures set to be named during the coming week as more documents are released.

The world's top financial institutions are still reeling from last year's enormous Panama Papers data leak revealed how Vladimir Putin's inner circle and a 'dirty dozen' list of world leaders were using offshore tax havens to hide their wealth.

A host of celebrities, sports stars, British politicians and the global rich were implicated in that release.

The 11million files contained more data than the amount stolen by former CIA contractor Edward Snowden in 2013.

Documents were leaked from one of the world's most secretive companies, Panamanian law firm Mossack Fonseca showing how the company allegedly helped clients launder money, dodge sanctions and evade tax.

Tory donor Lord Ashcroft is accused of remaining a non-dom and channeling his income through a tax haven in a bid to pay as little as possible to the British Government

Megastars Jackie Chan and Lionel Messi were among the big names accused of using Mossack Fonseca to invest their millions offshore.

The Panama Papers also revealed that the £26million stolen during the Brink's Mat robbery in 1983 may have been channelled into an offshore company set up by the controversial law firm.

Meanwhile, Egypt's former president Hosni Mubarak, Libya's former leader Colonel Gaddafi, Syria's president Bashar al-Assad and Chinese president Xi Jinping were among those alleged to have links to tax havens through families and associates.

Today's leaks centre around a law firm named Appleby which has offices in infamous offshore tax havens including the British Virgin Islands and Bermuda.

It provided the structures that helped the world's rich and powerful to legally reduce their tax bills.

But unlike Mossack Fonseca - which was discredit in last year's Panama Papers investigation - it presents itself as a legitimate 'magic circle' provider of offshore services.

What are the Paradise Papers? Explosive documents reveal how the rich and powerful protect their wealth The Paradise Papers are a collection of 13.4million documents that reveal a number of high profile figures, including the Queen and Donald Trump's commerce secretary, linked to offshore tax havens. The secret dossier was leaked by German news organisation Süddeutsche Zeitung, which revealed the equally explosive Panama Papers last year, that then called on the help of the International Consortium of Investigative Journalists to aide its probe. The dossier has revealed how the figures and organisations use schemes involving trusts and shell companies to protect their fortunes from tax officials. The majority of the data comes from Appleby, a leading legal firm based in Bermuda. Appleby helps companies set up in overseas countries that have low or non-existent tax rates. Source: BBC Advertisement

The firm said: 'Appleby has recently received inquiries from the International Consortium of Investigative Journalists and a number of media organisations who are partners of the ICIJ.

'These inquiries have arisen from documents that journalists claim to have seen and involve allegations made against our business and the business conducted by some of our clients.

'We take any allegation of wrongdoing, implicit or otherwise, extremely seriously. Appleby operates in highly regulated jurisdictions and like all professional organisations in our regions, we are subject to frequent regulatory checks and we are committed to achieving the high standards set by our regulators.

'We are also committed to the highest standards of client service and confidentiality. It is what we stand for. This commitment is unequivocal.

'Appleby has thoroughly and vigorously investigated the allegations and we are satisfied that there is no evidence of any wrongdoing, either on the part of ourselves or our clients.

'We refute any allegations that may suggest otherwise and we would be happy to cooperate fully with any legitimate and authorised investigation of the allegations by the appropriate and relevant authorities.

'We are an offshore law firm that advises clients on legitimate and lawful ways to conduct their business. We do not tolerate illegal behaviour. It is true that we are not infallible. Where we find that mistakes have happened, we act quickly to put things right and we make the necessary notifications to the relevant authorities.

'Having researched the ICIJ's allegations, we believe they are unfounded and based on a lack of understanding of the legitimate and lawful structures used in the offshore sector.'

The Paradise Papers are already sparking reactions from politicians who have branded the leak 'deeply worrying'.

Shadow chancellor John McDonnell told the BBC: 'Despite all the government's claims of cracking down on tax dodgers, this evidence confirms that tax avoidance is clearly continuing on an industrial scale.

'Either the prime minister or the chancellor needs to explain how this scandalous behaviour has been allowed to go on unaddressed for so long and what action is to be taken now.'

Liberal Democrat leader and former business secretary Sir Vince Cable also accused former prime minister David Cameron of failing to clamp down on off-shore tax havens.

Sir Vince was speaking in the wake of the release of so-called Paradise Papers, detailing financial dealings of the wealthy.

The veteran politician said in a statement: 'The Paradise Papers suggest that a small number of wealthy individuals have been able, entirely legally, to put their money beyond the reach of the Exchequer.

Liberal Democrat leader and former business secretary Sir Vince Cable accused former prime minister David Cameron, pictured, of failing to clamp down on off-shore tax havens.

'In the Coalition Government I introduced the register of beneficial ownership, which established who owns British companies, and sought to extend that to British Overseas Territories.

PM on Paradise Papers: Everyone in Britain must pay their tax Theresa May (pictured today) has said individuals and businesses should 'pay the tax that is due' in response to the 'Paradise Papers' leak of secret documents laying bare the financial affairs of the global elite. The Prime Minister refused to commit to introducing a public register of who owns offshore companies and trusts in British tax havens or opening a public inquiry into tax avoidance. Mrs May was responding to the disclosure of 13.4 million documents which reportedly tie major companies and political figures to secretive overseas arrangements. It includes claims that the Queen has £10 million of her personal fortune invested in an offshore tax haven. There is no suggestion that those involved acted illegally. Asked whether she would insist on public registers for British tax havens and a public inquiry into aggressive tax avoidance, Mrs May told the CBI annual conference in London: 'We have been continuing the work that David Cameron started and he started it not just for the UK but on an international stage as well, and that's important. 'So we have seen more revenues coming to HMRC over the last few years, since 2010 £160 billion extra that they have been able to raise. 'But we do work, there's already work that's been done to ensure that we see greater transparency in our dependencies and British overseas territories and we continue to work with them. 'HMRC is already able to see more information about the ownership of shell companies, for example, so that they can ensure that people are paying their tax. 'We want people to pay the tax that is due.' Advertisement

'This was to clamp down on tax havens operating under the British flag.

'David Cameron was initially attracted to the idea, but when the Overseas Territories said on a visit to London that they were against it, he backed down.

'Given these revelations, including news that Conservative donors benefited from these arrangements, we need a parliamentary select committee to investigate fully who decided what and why.

'In particular, we need the release of all government papers dealing with the decision not to clamp down on off-shore tax havens.

'Only in this way can we ensure there is full public confidence in the tax system.'

Labour leader Jeremy Corbyn said the data 'proves' that 'there's one rule for the super-rich and another for the rest when it comes to paying tax.'

His concern was echoed by Meg Hillier, the chairwoman of the House of Commons Public Accounts Committee, who said senior officials from HM Revenue and Customs (HMRC) would appear before the panel on Monday.

She said: 'British taxpayers will be rightly outraged by the content of these disclosures.

'Every pound moved offshore to avoid paying tax deprives public services of vital funds.

'The Government talks tough about clamping down on aggressive tax avoidance but once again we see HM Revenue & Customs being out-manoeuvred. HMRC must investigate the very worrying allegations arising from this leak.'

Substantial amounts of money from The Duchy Of Lancaster have been invested through funds in companies such as BrightHouse, which has come under fire for exploitation of vulnerable customers (stock photo)

One of the key figures named in the Paradise Papers is the Queen - who has around £10million of her private cash invested in overseas accounts.

Appleby: The offshore law firm at the centre of the Paradise Papers Today's leaks centre around a law firm named Appleby which has offices in infamous offshore tax havens including the British Virgin Islands and Bermuda. It provided the structures that helped the world's rich and powerful to legally reduce their tax bills. Just weeks ago the law firm revealed its data centre in Bermuda had been compromised in a cyber attack. The breach is thought to have been the precursor to today's enormous leak which implicates influential figures from across the world. Appleby counts KPMG, Uber, Apple and Nike among its key clients - with the prestigious law firm making $100million in revenue annually. Advertisement

Substantial amounts of money from The Duchy Of Lancaster, which pays the Queen and handles her estates, have been invested through funds in companies such as BrightHouse, which has recently come under fire for exploitation of vulnerable customers.

The duchy says it was unaware of its stake in BrightHouse while large sums have also been ploughed into off-licence chain Threshers - which went bust owing £17.5million in UK tax.

BrightHouse has been accused of overcharging customers and hard-selling to people with learning disabilities.

It recently had to pay back £14.8million in compensation to a quarter of 250,000 people.

Despite no tax advantages being gained by investing her money offshore, the news is likely to fuel arguments that greater controls need to be placed on royal spending.

Founded in the 13th century, the Duchy is a unique portfolio of land, property and assets held in trust for the sovereign.

These range from office blocks in The Strand to holidays homes, Bolingbroke Castle and a swathe of the tidal mudflats in Lincolnshire.

They are not entitled to touch the capital of the estate but profits from the property empire go into the Privy Purse, providing a 'private' source of income for the monarch.

The Queen is entitled to spend the money as she wishes but also uses it to help support members of her family, including Prince Andrew, Prince Edward, Princess Anne and the Countess of Wessex in lieu of their official duties as members of the Royal Family are no longer entitled to Civil List payments.

She voluntarily pays income tax on the revenue she receives.

The chief finance officer of the £500m estate, Chris Adcock, told the BBC: 'Our investment strategy is based on advice and recommendation from our investment consultants and appropriate asset allocation...

'The Duchy has only invested in highly regarded private equity funds following a strong recommendation from our investment consultants.'

A spokesperson for the Duchy of Lancaster added: 'We operate a number of investments and a few of these are with overseas funds. All of our investments are fully audited and legitimate.

'The Queen voluntarily pays tax on any income she receives from the Duchy.'

The complex deal between two billionaires that throws Everton's ownership into doubt Questions have been raised over who controls Everton FC after the complex offshore dealings of two billionaires were laid bare by the Paradise Papers. Last year Iranian businessman Farhad Moshiri sold his 15 per cent stake in Arsenal FC to Russian Oligarch Alisher Usmanov and used the money to buy a 50 per cent stake in the Merseyside club. But secret documents leaked to the press suggest his original stake in Arsenal was funded by a 'gift' from Mr Usmanov raising questions as to whether the Russian's money is now in Everton. Business partners: Farhad Moshiri, left, sold his stake in Arsenal FC to Alisher Usmanov last year If that is so, the deal would be in breach of Premier League rules which state that an individual who owns a stake of 10 per cent or more in one club cannot own a single share of another. Mr Moshiri's lawyers have said any such allegations against their client are false and that his football investments were paid for with his own money. The business associates bought a 14.58 per cent in Arsenal in 2007 through an offshore company called Red and White Holdings. The Paradise Papers state that the funding for the purchase came from Epion Holdings - a firm owned by Mr Usmanov. Mr Moshiri's lawyers claimed that their client paid Mr Usmanov back following the purchase. Mr Moshiri, who used to work as Mr Usmanov's accountant, described the allegations as 'crazy'. He told the BBC: 'If it is a loan, you owe the money back to him. If it is a gift, it is yours. It is neither of them because I paid for it. The associates increased their stake in Arsenal to 30.4 per cent before Mr Moshiri sold his half to Mr Usmanov in February 2016. In 2016 Mr Moshiri, pictured at Goodison Park, bought a 49.9 per cent stake in Everton Football Club The Iranian then bought a 49.9 per cent in Everton FC which reportedly cost £87.5 million. The deal raised suspicions at the time with one Russian news publication initially reporting that Mr Usmanov had bought the stake before removing the story from its website. Further questions were prompted when it emerged Everton's training ground, Finch Farm, was sponsored by the Russian Oligarch's USM company. Advertisement

The Paradise Papers also reveal that U2 frontman Bono used a company based in Malta to invest in a Lithuanian shopping centre.

The singer bought a share of Nude Estates which went on to purchase the Aušra mall shortly after it opened in 2007.

Five years later the business was transferred to a company in Guernsey called Nude Estates 1.

Bono's spokeswoman told the Guardian: 'Bono was a passive, minority investor in Nude Estates Malta Ltd, a company that was legally registered in Malta until it was voluntarily wound up in 2015.

'Malta is a well-established holding company jurisdiction within the EU.'

A UK Government spokeswoman said: 'Since 2010, the Government has secured an additional £160 billion, more than the annual UK NHS budget, for our vital public services by tackling tax avoidance, evasion and non-compliance.

'This includes more than £2.8 billion from those trying to hide money abroad to avoid paying what they owe.

'There are 26,000 HMRC staff tackling tax avoidance and evasion, and we have provided an extra £800 million to fund their efforts.

'A fair tax system is a critical and key part of our plan to build a fairer society, and we are clear that everyone must pay what is due, at the right time.'

In a statement to MailOnline, the government of Bermuda said that 'much of the narrative concerns foreign nationals in other jurisdictions'.

A spokesman said: 'The Government takes these matters extremely seriously and is reviewing developments with all parties concerned, including the relevant international authorities.

'Bermuda consistently ranks as a global leader in tax and transparency, with tax treaties with over 100 governments.'

The Premier of Bermuda David Burt added: 'We maintain high vigilance on any and all criminal activities, including cyber, as well as requiring leading standards on tax and transparency of all who do business here.

'We will not tolerate non-compliance in any of these areas, and are reviewing this incident and related matters, and will take any further action as required.'