Posts Tagged ‘Guernsey’

Private Eye on Andrea Leadsom and the Hedge Funds Backing Brexit

June 9, 2016

This fortnight’s Private Eye also has an interesting piece on Andrea Leadsom, one of the leading Tory Brexit supporters. Leadsom has been complaining that several of the organisations warning of the dire consequences Brexit will have on the British economy are funded by the dreaded EU. The Eye points out that Leadsom herself is also funded by her brother-in-law, a hedge fund manager based in the Channel Islands, and that the hedge funds generally support Brexit in the expectation that it will help them avoid paying tax. The Eye writes

Hedging Her Bets

“I put it down to a big institutional ganging up on the poor British voter,” complained Andrea Leadsom, the leading “outer” who is said to be having a good war, referring to the way the Institute for Fiscal Studies and others point out the likely costs of leaving the EU. “What do they have in common, these organisations?” Number one – lots of EU funding.”

The energy and former Treasury minister perhaps knows more than she has previously let on about the power of financial backing to influence views and policy. Leadsom herself ahs had plenty of financial backing from the offshore hedge und run by her brother-in-law Peter de Putron, as has the EU-sceptic Open Europe thinktank, she has championed (Eyes passim ad nauseam).

What result the Guernsey-based donor hopes for is not known. But plenty of other hedgies want out so they can escape EU regulation of their funds (inexplicably confident that a British Tory government would be kinder to them). Others are just pleased it’s all getting nice and tight so they can take positions on sterling and cash in on the early exit poll information they are paying for outside the polling booths. (p. 7).

Her connection to hedge funds and their managers should be one good reason alone why no-one should take Andrea Leadsom remotely seriously. Many of the private care home chains that collapsed a few years ago were run by hedge funds, as is a private hospital in Bath. These organisations see health and social care as a lucrative investment, and their financial arrangements are so organised in order to make it appear that the firms are operating close to their margins so they can benefit from tax breaks. As a result, the care homes and hospitals they manage are often underfunded and genuinely in a precarious financial situation. Hence the appalling failures of several care homes to provide acceptable standards of care to their elderly or handicapped inmates, and their spectacular collapse.

And unfortunately, at the moment the hedge funds and the parasites in charge of them are all too right in their expectations that a British Tory government won’t tax them. The Tories have shown absolutely no interest in doing so up to now. In fact, quite the opposite. They are trying to do their best to protect London and the rest of the country as a low tax haven for dodgy businessmen and financial speculators right across the world. It’s why one international politician declared Britain to be one of the most corrupt countries in Europe, because of the safety it provides to gangster right across the continent and the globe to launder their ill-gotten gains. The Tories are quite comfortable with this vile situation, and will do everything they can to protect it as far as possible, up to and including Brexit.

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Private Eye on Daily Mail’s Lord Rothermere Purchases Parking Space with Offshore Company

March 15, 2016

Private Eye in their issue for 20th December 2014-8th January 2015 published an article on how Lord Rothermere’s tax dodging had gone so far that he had actually used an offshore company to buy a parking space in London.

Offshore Ownership
Why Lord Rothermere Is Parking Mad

Daily Mail proprietor Lord Rothermere, also known as Jonathan Harmsworth, appears to go to extraordinary lengths to keep his millions out of the taxman’s clutches. The Eye has discovered that he has even bought a parking space near his Kensington office through an offshore company.

Land Registry data shows that in February 2009 a company called Harmsworth Holdings Ltd bought a 125-year lease on space number 76 at the exclusive underground private car park under York House, just across Kensington High Street from the Mail’s Derry Street offices. The company is registered in St Lucia, 300 miles off the South American coast.

Why Rothermere would need this bizarre arrangement is not clear – he would not comment on the matter to the Eye – but buying assets through offshore companies controlled by family trusts carries big tax advantages for “non-domiciled” taxpayers like Milord Rothermere (see Eyes passim).

The company owning the parking space is considered an overseas asset and remains outside the scope of a “non-dom’s” future inheritance tax bill. And if the parking space was bought out of the ample income received by the Bermudian company and offshore trusts through which Rothermere controls Daily and General Trust plc, there would be no “remittance” to the UK to generate an income tax bill.

The same St. Lucian company also owns land and one further, unidentified property in the Kensington area. Yet another Rothermere company, Harmsworth Trust Co (PTC) Ltd, registered in the British Virgin Islands, owns 10 English properties, most of them near the Rothermeres’ neo-Palladian pile in 200-acre Ferne Park in Wiltshire.

(Most non-doms, incidentally, would lose the inheritance tax break once they lived 17 out of 20 years in the UK. But Rothermere can thank his father for choosing France for his tax exile and thus bequeathing it as his country of domicile, since a longstanding agreement between the UK, and France happily overrides this rule.)

Rothermere isn’t alone in using an offshore company to own 12 square metres of tarmac and a precise 1.9 metres of airspace under York House. Fifteen further spaces – each said to be “large enough to accommodate a Rolls Royce”-have been bought in the same way: five through companies incorporated in the BVI, three in the Isle of Man, two in Liberia, one each in Jersey and Guernsey and a couple of unknown origin.

Rothermere’s purchase was for an unquantified amount, although other spaces bought around the same time went for £100,000, the top price being £149,500. Investors in what is described as “London’s first boutique car park” seem well-pleased. “What a delight,” says one. “Having suffered for many years with the aggravation of trying to find a parking space at night, let alone the frustrated nanny on the school run [sic]. This car park has solved all my problems.”

I’m astonished both at how expensive parking space in the rich areas of London are – £100,000 and over! – and how no purchase seems to be too small or too petty for the Rothermeres and people like them to purchase through offshore trusts. Though if they’re paying up to £150,000 for a parking space, you can see why they’d try a tax dodge. Do they do their weekly shopping at Harrod’s or wherever through offshore accounts? And their bespoke tailored suits – are they owned by them, or similarly the property of a company in the British Virgin Islands or St. Lucia!