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Chancellor George Osborne has become embroiled in a cash row after receiving a share of £335,000 from his family firm - even though it hasn't paid tax for seven years.

The wallpaper firm Osborne and Little Group Ltd has not paid any corporation tax since 2008 - according to an investigation by The Sunday Times.

Now the Chancellor, whose brother Adam was struck off the medical register this week for having an affair with a patient, is facing serious questions over the matter.

Mr Osbourne holds 6,833 shares in the family firm which makes hand printed wallpaper and was paid £1230 from the annual dividend while his parents were entitled to £270,000.

The company which employs 195 people at its London head quarters brought in £34m in revenues in 2015 - but made just £722,000 profit which was shared between directors.

According to the report, accounts for the past year show that the firm paid £6,000 in tax overseas - while it has also deferred a 'tax charge' of £173,000.

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According to the report the firm had not paid tax to date due to substantial losses in previous years.

A spokesman for Osborne said: "All of the chancellor's interests are declared properly and in accordance with the rules."

(Image: Rex)

The news comes as former Tory chancellor Nigel Lawson called for a complete review of the corporation tax system in Britain after a row over the amount of tax tech firm Google had been paying to the exchequer.

Prime Minister David Cameron was attacked by Labour leader Jeremy Corbyn at Prime Minister’s Questions over the issue.

Mr Lawson, who was the Chancellor under former Prime Minister Margaret Thatcher from 1983 to 1989 said: "I have long argued that in the modern world corporation tax has had its day as a major source of tax revenue. It needs to be a much lesser tax, bolstered by a tax on corporate sales.

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"While multinationals can artificially shift profits to whatever tax jurisdictions they choose, sales are where they are, and can't be shifted."

"Instead of endless discussion at international conferences of one kind or another, the UK should take the lead in implementing this much-needed tax reform."