**Did anyone follow the Panorama programme on Barclay brothers and their tax avoidance tactics ? Despite running successfull businesses in the UK, they havnt payed Tax since years ! how convenient … Check the article below on BBC :
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London’s high-end Ritz hotel has not paid any corporation tax in the 17 years since it was taken over by the reclusive Barclay twins.
The BBC’s Panorama programme analysed the accounts of the hotel bought by the brothers in 1995. The accounts show that the profitable hotel has used a series of tax reliefs to reduce its corporation tax to zero.
The brothers said they have not run their UK companies since they retired to Monaco more than 20 years ago. The Ritz’s efforts to reduce its tax bill are legal but have raised questions at a time when another firm bought by Sir David Barclay and Sir Frederick Barclay, Littlewoods, is embroiled in a legal battle with HMRC. The brothers also own the Daily and Sunday Telegraph newspaper titles
The catalogue company Littlewoods, bought by the twins in 2002, has already won a VAT rebate plus interest worth £472m from HMRC over payments dating back to 1973. But the twins’ company has gone to court to demand a further £1bn from the government in compound interest.
MP Nadine Dorries said: “They’re incredibly wealthy men who don’t pay British tax. I think it is just utterly appalling.”
The twins said they have had nothing to do with the running of the UK companies. “We have not attended office, management or board meetings in the UK since leaving the country,” Sir David Barclay said in a statement. “My brother and I have no editorial, political or economic power in the UK.”
Littlewoods, the Ritz and the Telegraph are controlled by offshore trusts. However, the trusts were set up by the twins and one of the brothers attends the trust meetings.
Richard Murphy, from the Tax Justice Network, said: “These meetings are taking place in Monaco, but there is no doubt that sitting right in the middle of the meetings are the Barclay brothers who are therefore able to exercise control of these companies.”
I know there is a lot of hue and cry going on these days about companies not paying tax. But the point we miss is that they are not doing anything illegal, they are just exploiting the legal loopholes available to them, and why not. Immoral, maybe, illegal definitely not. The bottom line instead of crying and making noise put your house in order and close those loopholes.
I agree EB, but then they have the audacity to sideline the UK business and lie through their teeth and now they are demanding all this money from the government , you must have read about their Littlewoods court case !
These are multi millionaires .. Though the government is the bigger culprit for not being able to cap these vultures .. but they cant just get away with trillions of pounds over the course of years , while us , regular people pay taxes through our teeth, while UK is undergoing such tough economic crisis :no:
Politicians love to spend other peoples money, and as big companies have the resources to legally avoid paying tax therefore burden falls on the small businesses to make up the shortfall. Small businesses are increasingly targetted, who in most cases make just enough to stay afloat. If big companies can legally avoid paying taxes then good luck to them. Governments need to reduce their own waste, wars and spying on its own citizens instead of taxing businesses out of the country.
There is no scandal but moral pressure is being applied to large businesses to pay more tax voluntarily.
Absolutely correct arshad, perhaps its the government that needs to be reigned in. they are the ones that need to bring in proper policies that will close all legal loopholes in tax avoidance
The Barclay's cant have it both ways. They are the ones who set up this arrangement before retiring sk at least they should have the integrity to accept this tax loophole exploitation was their brainchild.
The lawmakers need to close loopholes on the big guys. If these jokers still retain knighthood the title has no meaning. On " the greater good" grounds they should be stripped.