An extensive leak of financial documents indicates potentially significant tax deficits connected to Abramovich's offshore investments, which are under scrutiny as calls for an urgent investigation grow.
**Roman Abramovich Faces £1bn Tax Claims Amid Hedge Fund Controversy**
**Roman Abramovich Faces £1bn Tax Claims Amid Hedge Fund Controversy**
Sanctioned oligarch Roman Abramovich may owe the UK government up to £1 billion in taxes linked to dodged payments from hedge fund investments, a new investigation reveals.
The probing investigation suggests that Russian oligarch Roman Abramovich risks facing a tax bill of up to £1 billion due to alleged tax evasion surrounding hedge fund investments. The revelations, uncovered in leaked documents by the BBC and Bureau of Investigative Journalism, suggest that an estimated $6 billion in investments were funneled through British Virgin Islands (BVI) companies but were managed from the UK, placing them under UK tax jurisdiction.
Abramovich's associates assert that he complied with tax laws, claiming he relied on expert professional advice regarding his financial conduct. However, Labour MP Joe Powell has urged HM Revenue and Customs (HMRC) to examine the matter further, emphasizing the importance of recovering funds that could benefit public services.
The central figure in the alleged scheme is Eugene Shvidler, a former Chelsea FC director who reportedly exercised significant control over investment decisions while residing in the UK from 2004 to 2022. Legal representatives for Shvidler argue that the BBC's report misinterprets the information, maintaining their client's adherence to the law and the complexity of the investment structure.
Despite claims of legality, tax experts express concern that Shvidler's apparent influence over the BVI entities could support the assertion those firms owed UK taxes. The investigation highlights that profits from these investments eventually funneled into Abramovich's operations, including financial support for Chelsea FC.
The ramifications of HMRC's inquiries could lead to a substantial recovery of revenue owed to the UK, possibly exceeding the record penalty imposed on Formula One executive Bernie Ecclestone. Furthermore, tension exists regarding the £2.5 billion from Chelsea FC's sale that remains frozen over disputes on charitable distribution, leaving both Ukrainians and the British taxpayer awaiting resolution.
The leaked data is part of an extensive investigation led by the International Consortium of Investigative Journalists (ICIJ), focusing on how financial services are being leveraged by associates of Russian President Vladimir Putin through offshore entities. The inquiry continues to shed light on the intricate web of financial dealings and tax obligations surrounding high-profile individuals like Abramovich.
Abramovich's associates assert that he complied with tax laws, claiming he relied on expert professional advice regarding his financial conduct. However, Labour MP Joe Powell has urged HM Revenue and Customs (HMRC) to examine the matter further, emphasizing the importance of recovering funds that could benefit public services.
The central figure in the alleged scheme is Eugene Shvidler, a former Chelsea FC director who reportedly exercised significant control over investment decisions while residing in the UK from 2004 to 2022. Legal representatives for Shvidler argue that the BBC's report misinterprets the information, maintaining their client's adherence to the law and the complexity of the investment structure.
Despite claims of legality, tax experts express concern that Shvidler's apparent influence over the BVI entities could support the assertion those firms owed UK taxes. The investigation highlights that profits from these investments eventually funneled into Abramovich's operations, including financial support for Chelsea FC.
The ramifications of HMRC's inquiries could lead to a substantial recovery of revenue owed to the UK, possibly exceeding the record penalty imposed on Formula One executive Bernie Ecclestone. Furthermore, tension exists regarding the £2.5 billion from Chelsea FC's sale that remains frozen over disputes on charitable distribution, leaving both Ukrainians and the British taxpayer awaiting resolution.
The leaked data is part of an extensive investigation led by the International Consortium of Investigative Journalists (ICIJ), focusing on how financial services are being leveraged by associates of Russian President Vladimir Putin through offshore entities. The inquiry continues to shed light on the intricate web of financial dealings and tax obligations surrounding high-profile individuals like Abramovich.
