Investigation suggests that funds from controversial investment schemes may have benefitted Chelsea FC, drawing scrutiny from tax authorities.
**Roman Abramovich Faces Potential £1bn Tax Bill Amid Controversial Hedge Fund Scheme**
**Roman Abramovich Faces Potential £1bn Tax Bill Amid Controversial Hedge Fund Scheme**
Oligarch's complex investments may lead to significant tax liabilities for the UK government.
Sanctioned Russian oligarch Roman Abramovich could be held accountable for up to £1bn in unpaid taxes linked to an alleged scheme aimed at dodging duties on hedge fund investments. This revelation comes from a series of leaked documents reviewed by the BBC, indicating that approximately $6bn (£4.7bn) was funneled through companies situated in the British Virgin Islands (BVI). However, evidence suggests that the management of these investments occurred in the UK, implying they should have been liable for UK taxes.
Funds that partially financed Chelsea FC during Abramovich's ownership have been traced back to companies associated with this tax avoidance initiative. While Abramovich's legal representatives assert that he has consistently followed expert tax advice and denies personal responsibility for any tax evasions, calls for an investigation are intensifying. Labour MP Joe Powell has urged HM Revenue and Customs (HMRC) to look into this matter, stressing the potential public benefits of recovering substantial tax revenues.
Central to the operation is Eugene Shvidler, a former Chelsea FC director and longtime ally of Abramovich, who now faces challenges related to the UK sanctions imposed on him due to his connections with the oligarch. Having resided in the UK for years prior to relocating post-Ukraine invasion, Shvidler allegedly wielded significant influence over the investment strategy of the BVI-based companies.
Tax experts are highlighting the implications of Shvidler's decisions being made in the UK. Evidence from the leaked documentation appears to indicate that from 2004 to 2018, Shvidler enjoyed broad authority over BVI companies, a point that could significantly complicate the legal defense of the investment scheme.
Further investigation reveals that the structure of Abramovich's investments could lead to his various companies owing significant taxes, with estimates suggesting a potential liability reaching over £500m due to unreported profits. Unpaid tax, along with late payment penalties, could elevate this figure to over £1bn, particularly concerning as Abramovich previously had funds tied up in a charitable endeavor linked to his sale of Chelsea FC, which remain frozen due to ongoing disputes regarding their use.
Overall, this investigation is part of a broader examination into various Russian elites' financial maneuvers, leading to a growing urgency for accountability from the UK authorities regarding high-profile tax cases.
