RegulationCorporate GovernanceVantis execs charged over £219m “charity tax” evasion scheme

Vantis execs charged over £219m "charity tax" evasion scheme

Senior executives facing legal action from HMRC over charitable donations tax scam allegation

Two senior executives at Vantis have been charged with setting up a tax
scheme that HM Revenue & Customs (HMRC) alleges evades tax on income of
£219m, according to
The
Times
.

David Perrin and Roy Faichney, both senior managers at the stock
market-listed firm, will face charges of “cheating Her Majesty and the public
revenue”. The scheme is said to involve high-profile celebrities and sportsmen,
although there is no suggestion clients were aware of alleged fraud. Both Perrin
and Faichney formerly worked for HMRC.

They are said to have exploited the Gift Aid scheme on shares, which allows
donors gifting shares to a registered charity to reclaim tax at up to 40% on an
amount equal to the value of the shares. HMRC claim that 321 million shares were
created in four newly-formed companies; and then listed on the stock exchange in
the Channel Islands and gifted to charities at a value of £1 each. HMRC have
said that the shares are ‘for practical purposes worthless or of nominal value
only’ after investigating whether the share prices had been manipulated for tax
purposes.

Perrin and Faichney have insisted they are innocent and unaware of any
wrongdoing. A spokesman for Vantis stated that both men “will be strenuously
defending any charges brought against them, having received a summons to appear
at Highbury Corner Magistrates Court on October 30, 2009”.

Further reading:

Charity tax schemes ‘cost UK
£100m’

Read
The Times’ story

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