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Goldman Sachs in £79m UK tax avoidance ruling

Judge-Gavel-Law-Justice-Fine-Ban-480HMRC has won a £79m case against Goldman Sachs and agriculture giant Cargill  after the US companies attempted to avoid taxes in the UK, The Sunday Times reports.

Both companies owned the now-defunct Teesside Power Station in 2006, after its previous owner Enron collapsed in 2001.

Teesside Power sought hundreds of millions of pounds it said it was owed by Enron subsidiaries in the bankruptcy.

It then proceeded, acting on its auditor EY’s recommendation, to set-up a company in Jersey in an attempt to avoid paying corporate tax by converting some £200 million it received into shares.

HMRC clamp down on footballers in tax abuse probe

Her Majesty’s Revenue & Customs objected the structure, and has now issued a £79 million bill following a Court of Appeal ruling this month.

According to The Sunday Times, Cargill and Goldman said in a joint statement: “The decision regarding the interpretation of tax law is disappointing but the parties fully respect the court process. In the meantime, all UK taxes, including those disputed, have been paid.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. “The decision regarding the interpretation of tax law is disappointing but the parties fully respect the court process. We are also jumping for joy at how they missed all the other stuff and have already paid the £79 million, after having a whip round in the office. Triple’n’trebles all round!”

  2. When, oh when will journalists, politicians and the public ever learn that Tax Avoidance is perfectly legal and tax evasion is not.

  3. If you set up a corporate structure whose primary purpose is to avoid paying tax then expect to be caught.

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