More Chelsea

[Teddy Eagle]

A bit too complicated for me but this doesn't look good for their ex-owner.

Roman Abramovich could owe UK £1bn in unpaid tax

Scheme to avoid tax on offshore billions may have been botched because money was managed from the UK, BBC learns.

www.bbc.com

 

[MFW94]

Not surprising

you will get the Chelsea fans saying but despite 'the tax avoidance, links to putin, the illegal payments to agents, yacht tax scam' - he was a great owner lol.

Chickens always come home to roost eventually, he made himself an easy target for the UK government albeit most rich people are probably doing some sort of tax avoidance scheme - but in a time when funds are so dry elsewhere in the country, 500mill-1bill in unpaid is not a good look.

90% of football fans knew at the time he started splurging money in 2003/2004 that it wasnt a good thing for the game, completely changed the transfer market all whilst letting a shady oligarch into English Football

 

[Badger11]

A bit too complicated for me but this doesn't look good for their ex-owner.

Roman Abramovich could owe UK £1bn in unpaid tax

Scheme to avoid tax on offshore billions may have been botched because money was managed from the UK, BBC learns.

www.bbc.com

Hardly a surprise, however the chances of the UK recovering any unpaid tax are about the same as Palace wining the Champions League in the next 5 years.

 

[ASCPFC]

Hardly a surprise, however the chances of the UK recovering any unpaid tax are about the same as Palace wining the Champions League in the next 5 years.

A fifty/fifty chance.

 

[Teddy Eagle]

A fifty/fifty chance.

Sure. It's a coin toss with the emphasis on coin.

 

[Eagleman13]

Same as the one the bbc ran y/day about him leasing all his vessels out & using the BVI as their base, for tax reasons. All to do with Cyprus apparently & the bbc & it's 'media partners' it likes to mention in full at every opportunity. Who cares.

 

[RubinsCube]

A bit too complicated for me but this doesn't look good for their ex-owner.

Roman Abramovich could owe UK £1bn in unpaid tax

Scheme to avoid tax on offshore billions may have been botched because money was managed from the UK, BBC learns.

www.bbc.com

A lot of this stuff sounds more complex than it really is. When you set up companies (or hedge funds in this case) you are setting up a new and distinct legal entity. So if the entity is based outside the UK then in theory it should fall outside the scope of UK tax because it is not UK resident.

However, sometimes people do this purely for the purposes of avoiding tax and there are "anti avoidance" laws in place to stop artificial tax dodging.

One anti avoidance measure involves a "management and control" test. In other words, if you have an overseas company but really the commercial decisions are being made from the UK, then for all intents and purposes it is managed and controlled from the UK.

So it can be treated as UK resident and subject to UK corporation tax (maybe other taxes depending on the legal entity and ownership structure).

It seems this is what is going on here from the article. Ultimately a legal issue to be adjudicated by the courts.