Osborne to be questioned in EU Panama Papers inquiry

George Osborne could be among the big ministerial names to be called to appear before a European Parliament inquiry into the Panama Papers scandal, The Guardian reports.

A draft mandate for a 65-member "inquiry committee" has been drawn up ahead of being agreed at a meeting today between parliament President Martin Schulz and the leaders of the various party blocs.

It is expected that this will then be formally approved at a vote in the parliament on 23 June – ironically, the same day that Britons go to the polls to decide if the UK will remain a member of the EU.

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The committee is "the most powerful tool available to the European parliament", but, in a similar manner to select committees inquiries in the UK, it has no powers to impose penalties. It can, however, order a full investigation by the European Commission and as its hearings will be held in public and broadcast live over the internet, it will bring intense scrutiny to bear on witnesses.

According to Green MEP Molly Scott Cato, her party's spokesperson on tax affairs in Europe, one of these witnesses will "need" to be the UK chancellor.

"[Osborne] needs to explain why we continue to have this bizarre limbo in the overseas territories," she said, referring to the tax havens that fall under the auspices of the UK and which are among the most secretive financial centres in the world. "We need to move into the 21st century and regularise the situation."

Others called would include ministers and tax officials from across the continent, as well as bank chiefs, lawyers and accountants specialising in offshore arrangements, according to the draft documents. The committee will consider whether there have been breaches of European law, including a 2011 directive that requires EU states to warn their fellow members if they become aware of tax evasion.

The parliament estimates that tax evasion and avoidance costs the EU between €50bn and €70bn (£38.7bn and £54bn) a year.

The UK government has been consistently put on the back foot by the Panama Papers, which revealed that David Cameron's father, Ian, had run a fund that did not pay UK tax. There is no suggestion that taxes were unlawfully avoided or evidence that the structure lessened the eventual duties due to be paid by individuals in the UK.

At an anti-corruption summit last month, the Prime Minister announced new transparency rules for property purchases and a widespread information-sharing agreement with certain governments. Crucially, however, he has not secured any disclosure deals with UK tax havens.