Duncan Bannatyne and James Caan Dragons still at war in non-dom tax spat

Scotish entrepreneur Duncan Bannatyne has called for an apology from fellow Dragons' Den investor James Caan in the wake of their ongoing row over Mr Caan's non-domicile tax status.

The businessmen became embroiled in a war of words prior to filming the latest series of the hit BBC show. As a non-dom, Mr Caan, 49, does not pay tax in the UK on offshore earnings, which Mr Bannatyne said was "unfair". This week, Mr Caan sought to "draw a line" under the comments, labelling it a "personal and unfortunate exchange".

In a statement posted on his website he said: "Being a non-dom principally means that taxation on your offshore earnings falls outside the UK. I respect Duncan and his opinions. We are both professionals and I hope we can draw a line under this personal and unfortunate exchange. This year will be no different and the Dragons will do what they do best, investing and entertaining."

Mr Caan said he had paid £32.5 million in UK taxes up until this month. But yesterday on BBC Radio 5 live, Mr Bannatyne, 61, said he was owed an apology.

He said: "James Caan says he would not work with anyone who has a criminal record and I have one, so unless there is a big U-turn he can't work on Dragons' Den with me."

Mr Bannatyne earned a dishonourable discharge from the Royal Navy and six months in military prison for trying to throw his commanding officer off the side of a ship.

Asked if he had made up with Mr Caan, he said: "The last time we met in front of a room full of people, I put my hand out and he refused to shake my hand."