RBS in offshore tax schemes - report
British and US treasuries denied more than £500m in lost revenue, according to The Guardian
Royal Bank of Scotland placed at least £25 billion in offshore tax-avoidance
schemes, The Guardian has reported.
The arrangements mean the British and US treasuries would miss out on £500
million in lost revenue, the newspaper has claimed.
The previous management, led by Sir Fred Goodwin – sanctioned deals known as
“structured trades,” made across national borders that exploit gaps in different
countries’ tax laws, The Guardian said. Thirteen such deals, involving
amounts of as much as £6 billion at a time, were identified by The
Guardian.
The deals are not illegal, but companies that use them end up paying less tax
in their home country, beecause income is shifted to offshore facilities of tax
havens including the Cayman Islands in the Caribbean.
The new management at state-owned RBS, mindful of the fact that it is now 70%
owned by the taxpayer, has disbanded the department responsible and will put an
end to the controversial practice, The Guardian said.
Further reading:
RBS
avoided £500m of tax in global deals