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Friday, Jan 31, 2025
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Roman Abramovich’s Tax Affairs Under Scrutiny Following £1bn Investigation Call
A group of UK MPs urges HMRC to probe Roman Abramovich’s offshore investments, suggesting potential tax liabilities of up to £1bn.
Roman Abramovich, the Russian oligarch and former owner of Chelsea FC, is facing increasing pressure to be investigated by HM Revenue & Customs (HMRC) regarding £1 billion in potential unpaid taxes.
A group of Members of Parliament (MPs), led by Labour’s Joe Powell, has urged the tax authority to thoroughly examine the offshore investments Abramovich holds, following reports by the BBC and its media partners.
These reports suggest that investments worth approximately £6 billion, funneled through companies in the British Virgin Islands (BVI), may have been managed from the UK, potentially making them subject to UK tax laws.
The investigation stems from leaked documents that the BBC and the Bureau of Investigative Journalism (TBIJ) have been examining for over a year, part of a broader inquiry into Abramovich’s financial dealings.
These papers, originating from a Cyprus-based company managing Abramovich’s global business empire, indicate that certain investment decisions could have been made in the UK, in violation of tax laws regarding offshore companies.
In a letter to HMRC, Powell emphasized the significance of these findings, suggesting they raise serious questions about Abramovich’s tax obligations.
The letter called for an inquiry into whether Abramovich owed unpaid taxes to the UK government, noting that any recovered funds could aid in public services and managing the national debt.
HMRC, in response, reaffirmed its commitment to ensuring everyone complies with tax laws, regardless of their wealth.
Abramovich’s legal team has countered the allegations, asserting that the oligarch had always sought independent legal and tax advice and complied with it.
Furthermore, they have denied the allegations that Abramovich mismanaged any investments.
The BBC’s investigation also found a connection between the offshore companies and Abramovich’s purchase of Chelsea FC. The leaked documents show that key figures tied to Abramovich, such as Eugene Shvidler, a close associate with British citizenship, wielded significant control over the BVI companies.
However, Shvidler’s legal team has challenged the report’s claims, suggesting that the documents were incomplete and the tax structure of these investments was well-planned by professional advisors.
The debate underscores the ongoing challenges surrounding offshore tax avoidance and the complexities of international financial transparency, as governments worldwide increase their scrutiny of wealthy individuals' tax practices.
A group of Members of Parliament (MPs), led by Labour’s Joe Powell, has urged the tax authority to thoroughly examine the offshore investments Abramovich holds, following reports by the BBC and its media partners.
These reports suggest that investments worth approximately £6 billion, funneled through companies in the British Virgin Islands (BVI), may have been managed from the UK, potentially making them subject to UK tax laws.
The investigation stems from leaked documents that the BBC and the Bureau of Investigative Journalism (TBIJ) have been examining for over a year, part of a broader inquiry into Abramovich’s financial dealings.
These papers, originating from a Cyprus-based company managing Abramovich’s global business empire, indicate that certain investment decisions could have been made in the UK, in violation of tax laws regarding offshore companies.
In a letter to HMRC, Powell emphasized the significance of these findings, suggesting they raise serious questions about Abramovich’s tax obligations.
The letter called for an inquiry into whether Abramovich owed unpaid taxes to the UK government, noting that any recovered funds could aid in public services and managing the national debt.
HMRC, in response, reaffirmed its commitment to ensuring everyone complies with tax laws, regardless of their wealth.
Abramovich’s legal team has countered the allegations, asserting that the oligarch had always sought independent legal and tax advice and complied with it.
Furthermore, they have denied the allegations that Abramovich mismanaged any investments.
The BBC’s investigation also found a connection between the offshore companies and Abramovich’s purchase of Chelsea FC. The leaked documents show that key figures tied to Abramovich, such as Eugene Shvidler, a close associate with British citizenship, wielded significant control over the BVI companies.
However, Shvidler’s legal team has challenged the report’s claims, suggesting that the documents were incomplete and the tax structure of these investments was well-planned by professional advisors.
The debate underscores the ongoing challenges surrounding offshore tax avoidance and the complexities of international financial transparency, as governments worldwide increase their scrutiny of wealthy individuals' tax practices.
