Roman Abramovich could owe UK £1BILLION over tax dodge that helped fund Chelsea – as expert reveals ‘big smoking gun’
FORMER Chelsea owner Roman Abramovich could owe the UK up to £1billion in unpaid tax, it is claimed.
The sanctioned Russian oligarch allegedly used the money as part of a botched tax dodge to help fund his purchase of the Premier League club in 2003.
Leaked documents seen by the BBC and Bureau of Investigative Journalism show hedge fund investments worth £4.7billion were managed in the UK, despite being routed through firms in the British Virgin Islands.
Some of the money can reportedly be traced back to funding Abramovich used to buy the Blues.
The oligarch’s lawyers said he “always obtained independent expert professional tax and legal advice” and “acted in accordance with that advice”.
He denies any responsibility for or knowledge of unpaid tax.
Labour MP Joe Powell, who leads a Parliamentary group on fair taxation, has called on HM Revenue and Customs to “urgently” investigate.
The data allegedly shows Abramovich invested a large part of his fortune into a BVI-based company called Keygrove Holdings Ltd.
A network of firms owned by Keygrove then invested his money into Western hedge funds, which made the oligarch up to £3.1billion, it is claimed.
Former Chelsea director Eugene Shvidler is understood to be at the centre of the scheme, and is currently challenging the UK government after he was sanctioned due to his ties to Abramovich.
A tax expert told the BBC evidence Shvidler had made decisions on the investments while based in Britain was “a pretty big smoking gun” as to whether the companies involved should have been paying tax.
His legal team said the news outlet’s reports are based on “confidential business documents that present an incomplete picture” and had “drawn strong and erroneous conclusions as to Mr Shvidler’s conduct”.
Abramovich’s lawyers added he had sought advice on his tax affairs and he “expects that similar advice was sought” by others involved in such investments.
The BBC also reported earlier this week that Abramovich had avoided millions in VAT on the running costs of his yacht.