Senior Tory ministers back call for probe into allegations Jean-Claude Juncker encouraged tax avoidance

Mr Juncker, who denies wrongdoing, came under pressure at the G20 summit in Australia over allegations

European Commission chief Jean-Claude Juncker gestures during a press conference in Brussels on Wednesday (Getty Images)

European Commission president Jean-Claude Juncker should be investigated over allegations he encouraged tax avoidance, according to senior Tories.

Mr Juncker, who denies wrongdoing, came under pressure at the G20 summit in Australia over allegations that he encouraged companies to minimise their bills by taking advantage of Luxembourg's rock-bottom tax rates while he was finance minister and prime minister of the Duchy.

Work and Pensions Secretary Iain Duncan Smith and Conservative Party chairman Grant Shapps have backed the need for an investigation into the issue.

Mr Duncan Smith said he did not know if the matters were true or false but said the European Commission needed to show it had "no fear of investigating their own".

He did not name or criticise Mr Juncker directly when asked about the issue on BBC Radio 5 Live's Pienaar's Politics.

But he said: "This is a real moment for the European Union, for the commission, to show that it has the capacity and the determination to investigate its own and so if there is an issue, if there is some serious issue about a conflict and at one time one thing is being said and at another thing is being done, then these things need to be investigated and made public.

"And as soon as they're made public decisions have to be taken.

"The trouble for the European Union historically has been that it circles the wagons around the people that are having the finger pointed at them and refuses to let any kind of change takes place."

Questioned if he expected Mr Juncker to be thoroughly investigated by the commission, Mr Duncan Smith replied: "I think what is required from the European Commission is complete transparency."

When pressed if this meant Mr Juncker's case, the Cabinet minister replied: "Yes. I would say the same by the way if it were Britain.

"You need to make sure when you're saying one thing and doing one thing that you don't then say and do another at the same time, so there has to be an absolute clear purpose and at the same time a determination of the European Commission to make sure this whole issue is not brushed under the carpet but is transparent, open and investigated and then decisions can be taken one way or another."

Mr Shapps told the same programme: "I haven't seen all this evidence.

"I think it is absolutely right that it is properly investigated and that is what I hope will happen next.

"But either way the important thing is to hold Europe to account and to do that you've got to have a credible in-out referendum so you can have these negotiations about all of this stuff."

On whether Mr Juncker should resign or stand aside while the claims are examined, shadow Europe minister Pat McFadden told BBC Radio 5 Live: "I think there's little chance of that but I think if more comes out on this then really serious questions will have to be asked about his position."

PA