Roman Abramovich, the Russian oligarch embroiled in controversy, may have dodged millions in taxes through a complex superyacht chartering scheme, according to a thorough investigation by the BBC and the Bureau of Investigative Journalism. This operation aimed to mislead tax authorities by falsely presenting Abramovich's fleet of yachts as a legitimate commercial leasing venture, allowing him to evade significant VAT charges.
The investigation highlights a particular incident from Christmas 2011 when Abramovich, despite having chartered his extravagant superyacht, Eclipse, for the festive season to a British Virgin Islands-based company, was spotted enjoying the yacht in the Caribbean. This revelation is part of a larger fraud scheme exposed by over 400,000 leaked documents and emails from MeritServus, a corporate service provider in Cyprus.
Legal experts, including Italian tax professor Tommaso Di Tanno, characterized the practices uncovered as criminal tax evasion, emphasizing the artificial structures created to disguise Abramovich's ownership and control of the chartered vessels. His legal team has denied any wrongdoing, asserting that Abramovich sought independent tax advice and acted within legal boundaries.
Throughout the 2000s, Abramovich acquired five luxurious yachts, among which were Eclipse, valued at around $700 million, and Pelorus, which he once lent to football star John Terry. These vessels were reportedly leased to a Cypriot company, Blue Ocean Yacht Management, which then operated under the guise of independent entities from the oligarch. However, scrutiny has revealed that all the companies involved were effectively controlled by Abramovich through a network of trusts.
In internal communications, the intent to avoid VAT payments was explicitly outlined, with documented strategies to obscure financial ties among his businesses. Reports indicate that operations were manipulated, with records suggesting backdated charter agreements to secure duty-free fuel and minimize tax liabilities.
The investigation also brought to light previous legal inquiries regarding Abramovich's yachts. Despite scrutiny, the cases often fell apart, primarily due to the legal teams producing documentation that suggested commercial usage of the vessels.
As international scrutiny grows concerning Abramovich's tax arrangements, the ongoing investigations into his operations, including a separate inquiry by Cypriot tax authorities for substantial unpaid VAT, could have significant ramifications on his financial empire. The case echoes broader concerns regarding Russian oligarchs' financial practices and their connections with governmental bodies, emphasizing the need for rigorous enforcement of tax regulations against high-net-worth individuals.
