Roman Abramovich's Superyacht Tax Evasion Scheme Exposed
Roman Abramovich, the Russian oligarch renowned for his extravagant lifestyle, allegedly orchestrated a complex offshore scheme to evade tens of millions in taxes related to his fleet of superyachts. An investigation led by The Guardian, alongside other media partners, unveiled documents from the Cyprus Confidential leak, indicating that companies owned by Abramovich falsely claimed his yachts were used for commercial purposes to avoid Value Added Tax (VAT).
Between 2005 and 2012, Abramovich's fleet was managed through Blue Ocean Yacht Management, a company based in Cyprus, which utilized a convoluted structure to lease the yachts from offshore entities. This arrangement allowed them to avoid VAT on significant expenses, such as refueling, which cost up to $2 million per tank.
Despite maintaining appearances of a legitimate commercial operation, the yachts were primarily used for Abramovich's personal enjoyment, hosting high-profile guests at lavish parties. Legal advisors representing Abramovich insist that he followed professional tax guidance and was not aware of any wrongdoing.
Authorities in Italy and Cyprus have raised concerns regarding Blue Ocean’s tax practices, with Cyprus determining the company owed over €14 million in unpaid taxes, a claim subsequently upheld by the country's supreme court. While the exact implications of these findings on Abramovich remain uncertain, experts indicate that the evidence suggests a potential breach of tax law, pushing the boundary from avoidance to evasion.
