BBC News and File on 4 investigators James Oliver, Harriet Agerholm, and Will Dahlgreen have uncovered evidence suggesting that sanctioned Russian oligarch Roman Abramovich may owe the UK up to £1bn due to a failed attempt to evade tax on hedge fund investments. Leaked papers show that investments totaling $6bn were funneled through companies in the British Virgin Islands (BVI) but were managed from the UK, making them liable for UK taxation.
The investigation also found that funds used to finance Chelsea FC during Abramovich’s ownership can be traced back to companies involved in the tax avoidance scheme. Despite claims from Abramovich’s lawyers that he followed professional advice and denies personal responsibility for any unpaid tax, Labour MP Joe Powell is calling on HM Revenue and Customs to urgently investigate the case.
At the center of the scheme is Eugene Shvidler, a former Chelsea FC director and close associate of Abramovich, who is currently contesting sanctions imposed by the UK government. Evidence suggests that Shvidler, while residing in the UK, made strategic decisions regarding the investments, potentially exposing them to UK taxation.
The leaked documents indicate that Shvidler gained significant control over the BVI investment companies, directing their investments from the UK. This crucial role in decision-making was further corroborated by a court case involving a New York firm advising on investments for Abramovich, with Shvidler identified as the key decision-maker.
Experts believe that the evidence points to the investments being subject to UK taxation, with potential liabilities exceeding £1bn if unpaid tax, interest, and penalties are taken into account. The investigation sheds light on the complex financial structures used by Abramovich to avoid tax on his business dealings, including the financing of Chelsea FC.