PFI shareholders are using tax havens, MPs find

by Jaimie Kaffash

More from this author

01 Sep 2011

  • Comments
Margaret Hodge ourcreativetalent flickr photostream

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.

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."

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.