The investigation into oligarch Roman Abramovich's superyacht leasing activities has unveiled a complex scheme designed to evade millions in tax payments. In a collaborative effort by the BBC and the Bureau of Investigative Journalism, documents reveal that Abramovich chartered his own luxury yachts, including the famed Eclipse and Pelorus, through a web of companies to obscure ownership and mislead tax authorities.
In December 2011, despite owning the 162.5m Eclipse, Abramovich was photographed enjoying a Caribbean vacation on the vessel while records indicated it was supposedly chartered. This discrepancy points to a broader tactic employed over the past decade, suggesting a methodical approach to avoid value-added tax (VAT) associated with yacht operations.
Tax experts, including Italian legal scholar Tommaso Di Tanno, assert that this maneuver constitutes tax evasion, describing the setup as "criminal." Meanwhile, Abramovich's legal team defends him, stating he always sought and adhered to professional tax advice.
Key to this investigation were over 400,000 leaked documents and emails from the Cypriot firm MeritServus, which managed Abramovich's corporate interests through an intricate network of trusts. The leaked accounts detail how yacht management companies would lease these vessels to shell companies in the British Virgin Islands—entities that appeared independent yet were ultimately controlled by Abramovich.
Despite the façade of legitimate business practices, the leaked communications indicate intentional efforts to disguise the structure's true nature. A 2005 memorandum by Jonathan Holloway from Blue Ocean Yacht Management outlined strategies to avoid VAT entirely, cautioning that a diligent observer could eventually pinpoint the operation's real connections.
Documents also raise concerns regarding backdated agreements designed to secure tax benefits, with instances where charters seemed manufactured to cover financial gaps. Notably, Deloitte tax consultants informed Blue Ocean that if the yachts were identified as pleasure vessels, VAT would be applicable. However, classifying them as commercial vessels would exempt them from this tax.
Legal scrutiny has followed Abramovich; investigations in Cyprus have examined Blue Ocean's classification as a commercial operator. Tax authorities rejected its claims, emphasizing the lack of evidence proving legitimate commercial use, leading to demands for millions in unpaid VAT.
Through this extensive inquiry, the true scale of potentially fraudulent tax activity by Abramovich is becoming increasingly apparent, shedding light on the billionaire's complex financial dealings and their implications in a world grappling with economic transparency and accountability.
