Roman Abramovich's £1bn Tax Liability Under Scrutiny: MPs Demand HMRC Investigation

A group of MPs, led by Labour MP Joe Powell, is calling for an investigation into Russian oligarch Roman Abramovich concerning a potential £1 billion tax liability. A letter to HMRC highlights concerns raised in BBC reports about Abramovich’s offshore investments and tax responsibilities. Leaked documents show that his investments, valued at approximately $6 billion (£4.7 billion), were processed through companies in the British Virgin Islands (BVI), but indications suggest these operations were managed from the UK, potentially exposing them to UK tax laws.

Abramovich’s legal team asserts he has always acted in compliance with professional tax and legal advice. However, the MPs emphasize that proper scrutiny is vital, especially as the UK faces pressing public service funding needs. The BVI companies appear to have been controlled by Eugene Shvidler, a close associate residing in the UK, which complicates the tax implications.

The broader context includes leaks related to the Cyprus Confidential investigation, a major collaborative effort looking into associates of President Vladimir Putin, indicating that tax avoidance through offshore structures is common. Therefore, the MPs argue that ensuring any unpaid taxes are collected is of paramount public interest.