‘Dirty money!’ Russian oligarchs targeted in property tax clampdown – how UK will benefit | Personal Finance | Finance
Experts believe the introduction of a new emergency property registrar will shine a light on corruption and tax avoidance happening in the country, which will benefit taxpayers down the line. This comes amidst the ongoing war in Ukraine after Vladimir Putin’s regime invaded the sovereign nation last week, resulting in the loss of many lives and millions being displaced due to the conflict. In light of this crisis, there have been widespread calls from outside and within the Government to tackle the ongoing issue of “dirty money” by Russian oligarchs in London which has facilitated the actions of Putin.
Speaking exclusively to Express.co.uk, Robert Palmer, the executive director of Tax Justice UK, outlined how bad the issue is in the UK.
Mr Palmer said: “London is one of the biggest hubs with dirty money around the world. In particular, London property is at the centre.
“There was some research carried out by Transparency International that found £1.5billion worth of property was bought in the UK by Russians accused of corruption with links to the Kremlin.”
Addressing the new registrar, the tax expert outlined why it is an essential first step to tackling tax avoidance.
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“The new registrar will provide transparency about who owns housing in the UK and how many are owned through offshore companies,” Mr Palmer explained.
“The Government is also going to introduce new rules to tighten up company tabs, so as to tighten up the UK shell companies.
“This will shine a welcome spotlight on those who own UK property through secretive offshore companies.
“It needs to be part of a much broader crackdown on London as a laundry for dirty money and to run alongside extra investment in Companies House, so officials can actually get the job done.”
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On why this matters to ordinary people, Mr Palmer emphasised how tax injustice affects how everyday Britons are able to access vital public services, which have been the lifeline for many during the pandemic.
He added: “Zooming out, there is this connected web of professionals, money laundering techniques, and shell companies that are used by Russian oligarchs.
“But, they are also used by wealthy people to not pay their tax or by large companies not to pay that tax.
“Secondly, people feel as though rich people and companies are opting out which really undermines their faith in the system and willingness to contribute themselves.”
The tax expert believes the recent developments in Ukraine have been a watershed moment in regards to how Britain treats tax avoidance and how the promise of “dirty money” has exacerbated existing problems, such as the energy bill crisis.
“The invasion of Ukraine really brought home that Putin and his regime are propped up by oligarchs being able to move their dirty money in London,” Mr Palmer said.
“That has a lot of consequences. Taking it back further, part of the reason why we’ve had high energy bills is partly due to our reliance on Russia.”
