Elizabeth II, Madonna implicated in tax haven scandal

Marsha Scott
November 8, 2017

Despite no tax advantages reportedly being gained by investing the Queen's money offshore, the news is likely to spark arguments that greater control must be placed on royal spending.

The leader of the UK's opposition Labour party has suggested Queen Elizabeth II should apologise if her private estate invested roughly 11 million euros (10 million pounds) in offshore portfolios in the Cayman Islands and Bermuda to avoid paying tax in Britain, stated British media reports.

The Paradise Papers also name many other wealthy individuals, including members of Donald Trump's cabinet, who may have ties to offshore dealings.

The documents are part of a massive offshore leak released today dubbed the Paradise Papers - a trove obtained by the German newspaper Sueddeutsche Zeitung and shared with the International Consortium of Investigative Journalists, including the CBC.

The queen's assets are invested by the Duchy of Lancaster.

A small exposure of the Queen discovered in the leasing company, BrightHouse, which was accused of the acquisition on the poor and Threshers - British chain of stores went bankrupt, owing £ 17.5 million of taxes and having left without work of 6 thousand people.

Last week the Financial Conduct Authority said BrightHouse had not been a "responsible lender" and ordered the firm to pay £14.8 million back to almost 250,000 customers.

Opposition Labor MP Margaret Hodge, the former chair of the House of Commons Public Accounts Committee, said she was "pretty furious" with the Queen's investment advisers for endangering her reputation.

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A document outlining a limited partnership agreement with Dover Street VI Cayman Fund LP naming the Duchy of Lancaster.

In the most recent fiscal year, the Duchy generated £19.2 million ($25 million) in net income according to its website. "All of our investments are fully audited and legitimate", the Duchy of Lancaster said in a statement.

"The Dover Street investment was bought in 2005 and forms only 0.3% of the total value of the Duchy".

The Duchy added the BrightHouse holding now equates to only 3,208 pounds and it was not involved in fund investment decisions and claimed that it had been unaware the retail featured in the investments.

The Duchy confirmed to the Guardian it no longer has that stake but said it did have other investments offshore.

The Duchy also invested around US$7 million in the Jubilee Absolute Return fund, which invests in hedge funds.

"The Duchy has only invested in highly regarded private equity funds following a strong recommendation from our investment consultants", he said.

Other reports by MaliBehiribAe

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