Posts Tagged ‘British Banking Association’

Private Eye on More Tax Avoiding Press Barons

March 18, 2016

I found this feature on in Private Eye’s issue for the 17th-30th April 2015 on how Yevgeny Lebedev, the former owner of the Independent, the Barclay twins, who own the Telegraph and Lord Rothermere all use their non-dom tax status to avoid paying British tax.

Non-Dom Press Barons
Street of Sham

So consuming was the Tory press’ rage at Ed Miliband’s plan to make Russian oligarchs and gulf petro-billionaires in London liable for the same taxes as British citizens, its hacks forgot to the declare their interest.

“London backlash over Ed’s non-dom attack,” boomed the front-page of the London Evening Standard, as if a mob had descended on Labour HQ to defend London’s much-loved oligarchs and hedge fund managers. “Attacking non-doms could backfire on us,” continued an editorial inside. Sarah Sands, the Standard’s Uriah Heepish editor, did not risk her career by saying who the “us” included – namely her boss, Standard proprietor Evgeny Lebedev, the Russian who last year dodged the Eye’s repeated questions of his own domicile.

Silence infected the Telegraph too, where not one of the reporters who warned that Labour’s “cataclysmic” decision would drive away “tens of thousands of entrepreneurs and business leaders” mentioned that their owners, the weirdo Barclay twins, reside in Monaco and the Channel Islands to avoid British tax.

Instead they quoted James Hender, head of private wealth at Saffery Champness accountants, who warned that the rich may leave. The Telegraph didn’t tell its reads that Hender boasts of his long experience ensuring that “the most tax efficient strategies are adopted for non-UK, situs assets” for his non-dom clients.

It was the same at the Mail, which failed to declare that its owner, 4th Viscount Rothermere, is treated by the tax authorities as a non-dom. And at Sky, political editor Faisal Islam reported that “Baltic Exchange boss Jeremy Penn slams Labour non-dom plans” without declaring that his owner, Rupert Murdoch, does not pay UK tax and that Penn acts for super-rich shipping owners.

Jolyon Maugham QC, who has advised Labour and the Tories on tax reform, tells the Eye that any reader sill enough to believe the Tory press and tax avoidance industry should look at what they said in 2008, when Labour introduced the first levies on non-doms.

Back then the Mail then said the central London property market would crash as non-doms sold up and moved to Switzerland. In fact, between Labour introducing the levy and 2014, prime central London property prices rose 41 per cent. At the end of 2014, Knightsbridge estate agent W.A. Ellis said 54 per cent of sales were to overseas buyers.

The Mail was equally certain the City would suffer. On 8 February 2008 it cried that the levy “risks the City’s future”. The British Banking Association warned of “a devastating blow”. The Telegraph of 12 February 2008 said that “the country’s wealthiest individuals are being bombarded with leaflets and letters explaining how easy it would be to relocate to Switzerland, Monaco and a host of other countries”. Not to be outdone, Mike Warburton, senior tax partner at accountants Grant Thornton, said the levy was the “final straw”. If a word of this had been true, there would be no non-doms left for Miliband to tax. As it is, there are 115,000 because, as Maugham says, London remains “a very nice place to live, if you’re wealthy. And that won’t change.” Or as the Financial Times put it: “The many advantages of London as a financial centre do not dissolve simply because of a change in a hitherto generous tax treatment of resident non domiciles.”

The pink ‘un has only recently realised the iniquity of the non-dom rule, with an editorial last month calling for its abolition. Editor Lionel Barber modestly claims some credit for Miliband’s stance. But as editor for almost a decade, why was he so late to the party? Surely not because, until 2013, FT owner Pearson was run by US-born Dame Marjorie Scardino, who would certainly have qualified for non-dom status and whose London flat, the Eye revealed, was owned via an offshore company?

So there you are. Fleet Street’s extremely rich proprietors, with the exception of the Financial Times, take the view that, in the words of the ‘Mayflower Madam’, the brothel owner arrested for tax evasion in New York now over a decade ago, paying tax is only for the ‘little people’. And they have no qualms about getting rich, while shifting the tax burden on to the poor and demanding low wages and zero-hours contracts. All the while proudly declaiming their patriotism, like the Sun, owned by Rupert Murdoch, resident in America. So much for real patriotism.

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Private Eye on the Non-Dom Press Barons of Fleet Street

April 22, 2015

Ed Miliband’s announcement a few weeks ago that he would end non-dom tax status was greeted with howls of derision from the right-wing Tory press. The Evening Standard, Torygraph and the Heil all claimed that if the various millionaires resident in Britain, who weren’t paying their taxes here, were forced to do so, then they would all leave en masse.

As Private Eye pointed out in last week’s issue, these paper’s stance has hardly been disinterested. Their owners are all non-doms. Evgeny Lebedev, the Russian oligarch, who owns the Evening Standard, last year dodged the Eye’s questions on where he pays his tax. The weirdo Barclay brothers, the owners of the Torygraph, are tax exiles in Monaco and the Channel Islands. And the Mail’s Viscount Rothermere is another one. He inherited his non-dom tax status from his father, despite not living abroad and building something that can only be described as a stately home in the south of England.

Sky also decided to join in the criticism, while obviously not mentioning that its owner, Rupert Murdoch, also doesn’t pay tax in Britain. Neither in fact, does Dirty Rupe’s papers, the Sun and the Times, which the Eye revealed a few years ago to be registered abroad for the purposes of corporation tax. So much for the true-blue British patriotism of these papers.

The Eye refuted all this criticism by printing the views of Jolyon Maugham, a QC who has advised both Labour and the Tories on tax policies. Maugham pointed to the similar criticisms levelled at Labour by the papers when the party first started levying taxes on non-doms in 2008. Then the Mail predicted a massive stock market crash, and it, the Telegraph and the British Banking Association all warned that Britain’s millionaires were considering leaving the country. In fact, the opposite was true. By the end of 2014, according to the Eye, about 54 per cent of property sales in Kensington were to foreign purchasers. At the moment, there are 115,000 non-doms in London, because the capital is still an extremely attractive place for millionaires.

The article also points out that the Financial Times also supports the ending of non-dom tax status. They suggest, however, the paper didn’t come out and make its opposition to the tax status earlier because until 2013, it was partly owned by Dame Marjorie Scardino, who would have been entitled to non-dom tax status on her London flat.

Readers of Johnny Void’s blog will know about the problems created in London by the presence of the global super-rich, and the way they are pushing ordinary working and lower-middle class Londoners out of the city. In a post I reblogged here a few days ago, Mr Void described the appalling destruction of London’s working class and counter- or alternative cultural heritage. Like the historic Black Cap gay bar, Soho, Tin Pan alley, parts of Camden market, and the relocation of St Martin’s school of art. It does seem that the capital’s real, living heritage that has grown up over decades and centuries, is being gutted in order to leave the capital another sterile, homogenous global environment for the planet’s super rich.

This has to be resisted – not just in London, but all over England and the UK. It’s part of a general process throughout Britain where gentrification and the desire to please and attract the wealthy from across the world is destroying working class communities, and the places they live, work, shop and relax across the UK.

The problem isn’t that if Ed ends the non-dom tax bracket, there’ll be an exodus of oligarchs and multi-millionaires, as the Week put on its cover last Friday. The problem is the opposite – that if the power and cupidity of the super-rich isn’t curtailed, they’ll price the poor out of their homes altogether. It’s most acute in London, but if it isn’t stopped, it’ll come to somewhere near you very quickly.