It is reported that 10 British billionaires and 408 UK business owners live in Monaco, according to The Sunday Times (AFP Photo/VALERY HACHE) |
London
(AFP) - Nearly a third of Britain's billionaires have either moved or are
relocating to tax havens, where some have broken UK law by bankrolling
political parties, a major investigation said on Thursday.
The Times newspaper
published a series of reports detailing allegations of Britain's ultra-rich
hiding billions of pounds from the UK Treasury in taxes over the past decade.
The report
came out days after the government drew public fury for delaying a vote on
proposed legislation aimed at ending secret company ownership in offshore
territories.
"We
must stop tax evasion so that the wealthiest pay their fair share,"
Margaret Hodge, a leading lawmaker from the main opposition Labour Party who
co-sponsored the tax haven measure, tweeted in response to The Times reports.
"Public
registers and more transparency are the next big step for fairer tax."
Prime
Minister Theresa May's government did not immediately respond to the
investigation.
Knights
and dames
The Times
said that 28 out of the 93 British billionaires it found through public records
"have moved to tax havens or are in the process of relocating".
It said
almost half of the 28 have left in the past decade.
The Times
said those in the process of moving included Jim Ratcliffe, Britain's richest
man and a major Brexit supporter. His chemicals firm is valued at £35 billion
($46 billion).
The Times said those in the process of moving included Jim Ratcliffe, Britain's richest man and a major Brexit supporter (AFP Photo/JUSTIN TALLIS) |
The Sunday
Times reported last month that Ratcliffe's move to Monaco, where it said 10
British billionaires and 408 UK business owners live, could cost the Treasury
up to £4 billion.
Asked about
his rumoured move last October, Ratcliffe told Britain's Press Association news
agency that he was staying in Britain.
The Times
said big business owners were trying to avoid paying Britain's relatively high
38.1 percent income tax on dividends -- the cash payments made by corporations
to their shareholders.
It is
effectively a profit tax, since business owners hold a large portion of their
company's shares.
Tax-evading
Companies
registered in offshore tax shelters such as the Channel Islands or countries
like Switzerland and the United Arab Emirates pay little to no tax.
The Times
said the exodus was spurred by a hike in income tax rates for top earners to 50
percent in 2010, which was reduced to 45 percent in 2013.
New rules
from 2013 making a switch in tax residency easier also contributed, The Times
said.
But some of
its most damning allegations concerned political contributions.
The Times
said successive UK governments have failed to properly enact a 2009 law banning
large donations from anyone residing abroad for tax purposes.
It said
tax-evading business owners and their companies have made political
contributions worth £5.5 million over the past decade.
Prime
Minister Theresa May's Conservatives accepted £1 million from these entities in
the months leading up to the 2017 snap general election, The Times said.
It added
that several of these billionaires have also received honorary titles such as
baron, knight and dame.
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