Tue, 28 Jan 2025

Abramovich dodged millions in tax with superyachts-for-hire scheme

Shell companies were used to charter the sanctioned oligarch’s yachts to himself, evading VAT, BBC reveals.
Tax Evasion Scheme
* The scheme involves chartering luxury yachts to other Abramovich companies at artificially low rates, allowing him to claim VAT exemptions.
* Records show that charter agreements were backdated, and invoices were raised when needed to cover expenses.
* Tax consultants from Deloitte in Cyprus advised Blue Ocean, an Abramovich company, on how to classify the yachts as commercial vessels to avoid VAT. Investigations
* Italian prosecutors investigated three of Abramovich's captains for unpaid excise duties and tax evasion but dropped the case after receiving documentation from Blue Ocean's lawyers.
* Cyprus tax officials were investigating Blue Ocean over €17m in unpaid VAT, but the company was dissolved before it could be paid.
* In 2018, a VAT appeal judgement found that Blue Ocean had failed to present evidence of commercial activity by the companies chartering the yachts. Abramovich's Companies
* Abramovich owns multiple companies in Cyprus and the British Virgin Islands that are involved in the tax evasion scheme.
* Records show that these companies were controlled by Abramovich himself, despite denying this to his captains and tax authorities. Other Revelations
* The article also mentions other cases of tax evasion and corruption involving associates of Vladimir Putin's regime.
* It highlights the use of offshore tax havens and shell companies to evade taxes and conceal illicit wealth. Implications
* The investigation raises questions about Abramovich's business practices and his ability to influence investigations into his companies.
* It also highlights the need for greater transparency and accountability in corporate governance and international cooperation on tax evasion.
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