Roman Abramovich May Face £1 Billion Tax Bill After Hedge Fund Investigation
Roman Abramovich, the sanctioned Russian oligarch and former owner of Chelsea FC, could owe the UK government up to £1 billion due to a tax avoidance scheme related to his hedge fund investments, according to evidence reviewed by the BBC.
Leaked documents indicate that an estimated $6 billion in investments were funneled through companies in the British Virgin Islands (BVI) but were effectively managed from the UK, which would subject them to UK taxation. A considerable portion of these funds reportedly financed Chelsea FC during Abramovich's ownership.
Abramovich’s legal representatives denied claims of tax evasion, stating he acted on expert advice. However, Labour MP Joe Powell has urged HM Revenue and Customs (HMRC) to investigate the situation urgently, highlighting the potential for significant funds that could benefit public services.
Key to this investigation is Eugene Shvidler, a former Chelsea FC director, who reportedly played a crucial role in managing these investments while residing in the UK. The latest insights suggest that decisions regarding these investments were made in the UK rather than the BVI, contradicting the tax avoidance strategy.
The investigation into Abramovich's dealings is part of a broader examination by international journalists into corporate practices related to Russian elites. As the UK government navigates long-standing issues regarding these financial schemes, the Russian oligarch's potential tax bill could surpass other high-profile cases, including that of Formula One executive Bernie Ecclestone.
As the situation evolves, there remains uncertainty regarding the distribution of £2.5 billion from the sale of Chelsea FC, which is currently held in a frozen account amid disagreements on its intended use.
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