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01 Sep 2011
TAX REVENUE lost through the use of tax havens by Private Finance Initiative (PFI) investors means the scheme does not represent value for money, MPs have said today.
PFI schemes are public projects that are part-funded by the private sector. A report by the Commons' Public Accounts Committee found that many shareholders of PFI investment funds are registered offshore. It quoted one fund that had 72% of its shareholders abroad.
Further reading
However, the Treasury does not take this into account when reviewing the value for money of a scheme for the Exchequer, the MPs said. The government was unable to say whether PFI investors had paid tax in the UK on their profits and equity gains or whether corporation taxes had been collected from PFI companies. PFI "looks like a better deal for the private sector than for the taxpayer," the report added.
PAC chair Margaret Hodge (pictured) said: "The Treasury assumes tax revenues when assessing the value for money of a PFI project, yet does not monitor whether taxes are paid. In our evidence, we found that tax revenue is being lost through the use of off-shore arrangements by PFI investors.
"The Treasury should measure the tax revenues from PFI deals and should ensure that this is taken into account in future assessments of PFI against conventional procurement."
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What a valuable report
Well Margaret Hodge should know having been in the forefront of the Labour government whichh wasted so much of our money on these PFIs.
I look forward to future reports from this committee on bears in woods and religous leaders with a balcony.
Posted by: Winston Smith, 01 Sep 2011 | 11:01
Asleep at the wheel
This has been known about for years!
http://hmrcisshite.blogspot.com/2011/09/asleep-at-wheel.html?spref=tw
Posted by: Ken Frost, 01 Sep 2011 | 16:18
Duh! Somene buy a subscription to Private Eye for the Commons Bar
What planet are these guys living on? Private Eye has published shed loads on PFI and the offshore aspect in particular. That they (1) need a committee to find this out and (2) are only waking up to this now is TERRIFYING
Posted by: I love PFI because it keeps debt off the Balance Sheet, 01 Sep 2011 | 18:25
MAPELEY STEPS
The mother of all PFI deals.
The one where all of the HMRC offices in the UK were sold to and leased back from - with OTT Maintenance contracts -
a Bermuda based shell company with LLPs as its shareholders
that "offshores" every penny that HMRC offices all over the country pay.
All those taxes they collect from us go to an untraceable non tax regime.
I SO SO SO wish I'd thought of it!
Posted by: Eleanor, 02 Sep 2011 | 21:02