The home secretary Amber Rudd used to be heavily involved in two offshore companies during her previous career in venture capital, according to leaked documents.
The leaked papers reveal she was director of Bahamian firms Advanced Asset Allocation Fund and Advances Asset Allocation Management between 1998 and 2000.
The Bahamas is notorious for imposing no income, corporate or wealth taxes on people investing in offshore companies and was named as one of the 30 unco-operative tax havens by the European Union last year.
However, there is no suggestion Ms Rudd, who became an MP in 2010, used the companies to avoid tax herself.
The data, which included a list of directors of 175,000 registered companies in the Bahamas, was leaked to German newspaper Süddeutsche Zeitung and shared with the International Consortium of Investigative Journalists, including the BBC Panorama and the Guardian.
Rudd failed to mention her involvement with the companies earlier this year when she supported David Cameron, after it was revealed the previous Prime Minister’s father, Ian Cameron, was among a group of senior Conservative peers and former MPs named in the ‘Panama Papers’.
She has previously denied having any funds in offshore accounts but said in an interview: "I’m pleased to say that all MPs have a very transparent system. They have to disclose their funds, their income, and of course famously a very clear expenses regulatory system.”
Rudd was also named as the director of Monticello plc by records at Companies House, according to the Guardian. The company’s shares soared and trading was subsequently suspended when co-director Mark O’Hanlon made false claims about the prospects of the company in an interview six years ago. He was sentenced to 18 months imprisonment for the false statement.
Rudd resigned from her position at the company five months later and resigned as director of Advanced Asset Allocation Management around the same time.
A spokesperson for the home secretary said: “It is a matter of public record that Amber had a career in business before entering politics. Monticello was thoroughly investigated 16 years ago and those who acted wrongly were identified and prosecuted.”
Earlier this year, a group of 300 senior economists called upon world leaders to “take a lead” and introduce new rules forcing multinational companies to publish their tax bills country-to-country, claiming poorer countries have been hit hardest by the use of tax havens.