Harrods boss loses tax appeal

Link: Tax ruling forces Al Fayed overseas

In May 2002 the Scottish Court of Session in Edinburgh overturned an Inland Revenue agreement with Al Fayed made in 1997 that agreed forward tax payments with the Harrods’ owner.

Al Fayed appealed the decision, which allowed him to pay just £240,000 a year in tax, but lost yesterday.

Lord Gill said in his judgement from 2002: ‘In a true sense the Al Fayed’s thereby became a privileged group who are not so much taxed by law as untaxed by agreement.’

Al Fayed is reported to be ‘extremely disappointed’ and is expected to take his case to the House of Lords.

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