Financial Transparency: Overseas Territories Debate
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Marie Rimmer
Main Page: Marie Rimmer (Labour - St Helens South and Whiston)Department Debates - View all Marie Rimmer's debates with the Foreign, Commonwealth & Development Office
Financial Transparency: Overseas Territories
Marie Rimmer Excerpts(1 day, 9 hours ago)
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Ms Marie Rimmer (St Helens South and Whiston) (Lab)
It is a pleasure to work under your chairmanship, Mr Twigg. I congratulate my hon. Friend the Member for Bolton West (Phil Brickell) for securing this important debate, and for his excellent introduction to it.
There is one particularly alarming case that we cannot overlook in this debate: that of Roman Abramovich. His activities epitomise how opaque offshore structures undermine UK financial integrity and global trust. In a letter to the Chancellor dated 10 September, the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) and I, as co-chairs of the APPG on Magnitsky sanctions and reparation, and my hon. Friend the Member for Bolton West, as chair of the APPG on anti-corruption and responsible tax, warned that Russian billionaire Roman Abramovich may owe HMRC up to £1 billion on profits from his multimillion-pound hedge fund investments. The Bureau of Investigative Journalism found that these hedge funds, although registered offshore, were being run from the UK. Under UK law, they should have been paying UK taxes. This investigation revealed that Abramovich benefited from a fraudulent scheme designed to evade €14 million in VAT due in Cyprus on his fleet of superyachts. Cypriot tax authorities have since filed criminal charges to recover more than €25 million in tax.
As our letter pointed out, HMRC has yet to respond to these findings. Even when journalists offered to brief HMRC’s permanent secretary, their offer went unanswered. That silence has raised serious concerns about the Government’s willingness to act decisively against those who use offshore networks and shield vast sums from scrutiny. The Government’s reply, sent in October, insists that
“everyone should pay the tax that is legally due”,
and highlighted new enforcement measures, including 5,500 extra compliance staff and the creation of a complex cross tax and offshore team. Those steps are welcome, but they do not answer our central question: why is there still no visible enforcement action in this case?
This is not just about one oligarch; it is about ensuring that our own financial system and the jurisdictions linked to it cannot be used to hide wealth, evade tax or escape sanctions. That £1 billion would build the 500 schools so badly needed in our poorest areas.