Aston Martins, personal shoppers and fine wine: How millionaires avoid tax by 'giving' their wealth to offshore trusts that they then brazenly 'advise' to pay for their luxury lifestyles
- Millionaires transfer money offshore and are appointed 'investment advisers'
- They avoid huge tax bills because their possessions are paid for by the trusts
- In one case a couple 'advised' trust to spend £2million on a fine art collection
- Another client is said to have have taken several luxury holidays disguised as 'investment trips' - including a £20,000 fortnight visit to a resort in Barbados
Millionaire tax avoiders are using a complicated scheme where they 'give' their wealth to offshore trusts which then pay for their luxury lifestyles.
They transfer their money to the companies and are then appointed 'investment advisers' and can keep control of the cash while technically not owning the money.
It means the wealthy clients avoid enormous tax bills because their possessions are paid for by the trusts - which are based in financial havens such as Bermuda and Mauritius.
The revelations were broadcast by the BBC's Panorama programme as part of its investigation into the 'Paradise Papers'.
Wealthy clients avoid enormous tax bills since their possessions are paid for by the trusts - which are based in financial havens such as Bermuda and Mauritius (stock photo)
The millions of leaked documents reveal the ways the rich and powerful shelter their wealth in offshore tax havens.
In one case banker Mark Faulkner and his photographer wife Harriet Logan 'advised' their offshore trust to spend £2million on a collection of fine art as well as £200,000 on fine wines which they admitted they 'might have to sample'.
They had transferred assets including a yacht, stocks and shares as well as a large portfolio of photography to Babington PCC - their offshore trust based in Mauritius.
In an email suggesting 'investment opportunities' they also advised the company to spend hundreds of thousands of pounds on a classic car to 'compliment [sic]' their trust's 'existing investment in the classic yacht Leonore'
Meanwhile call centre boss Greville Crowder is said to have taken several luxury holidays disguised as 'investment trips' - including a £20,000 fortnight visit to a resort in Barbados and a weekend in St Tropez by private jet.
Call centre boss Greville Crowder, pictured, is said to have taken several luxury holidays disguised as 'investment trips'
Although dozens of companies offering such arrangements exist, one of the most prolific operators is tax lawyer James O'Toole who runs a firm called Aston Court Chambers.
According to BBC Panorama, he owns a large mansion on the Isle of Man with its own orchard and vineyard as well as acres of land.
In his spare time he can be seen driving around in his two Aston Martins, Range Rover or on the back of a Harley Davidson - all while flashing his Rolex watch.
He also has his own personal shopper who picks up birthday cards and suggests Mothers' Day presents at a cost of thousands of pounds.
Although dozens of companies offering such arrangements exist, one of the most prolific operators is lawyer James O'Toole, pictured, who runs a firm called Aston Court Chambers
But as far as the taxman is concerned he does not actually own any of it.
Mr O'Toole is said to have advised dozens of clients on how to pay as little tax as possible using his schemes.
A lawyer for Faulkner and Logan told the Guardian: 'Our clients have now commenced dialogue with HMRC to review the arrangements that their previous advisers had recommended.
'If any financial arrangement that concerns our clients does not align with changes in law or the interpretation by the courts of the law, our clients, upon obtaining professional advice, will correct the position, including any required payment of tax following an assessment by HMRC.'
The Paradise Papers reveal that the Queen's cash was secretly funnelled to the Cayman Islands and Bermuda.
It also shows that Bono, members of Donald Trump’s cabinet and businesses including Apple and Facebook also invested in tax havens.
Meanwhile today it also emerged that F1 champion Lewis Hamilton 'avoided' paying VAT on his £16.5million private jet.
The 32-year-old, who won his fourth world title last week, received a £3.3million refund for the Bombardier Challenger 605, which was imported into the Isle of Man.
Today it also emerged that F1 champion Lewis Hamilton 'avoided' paying VAT on his £16.5million private jet, pictured
Any private jet purchased outside the European Union is subject to 20% VAT, in order to move freely around the continent.
The stars of BBC show Mrs Brown's Boys also stand accused of piling £2million into an offshore fund in Mauritius.
The trust would then 'loan' the money back meaning that it was not subject to UK income tax.
Paddy Houlihan, who plays Agnes Brown's son Dermot, said he had to Google 'tax avoidance' after a Panorama reporter called him in October over his investment.
Mr Houlihan claims he joined the Mauritius scheme after advice from his accountant but said he 'never knew what the f*** was going on' with his money.
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