"The newspaper claimed Tice had avoided paying corporation tax on the company's "multimillion-pound profits for most of 2018 to 2021" through gaining "rare legal status" for it as a real estate investment trust (Reit). The status gives firms a grace period in which they are exempt from corporation tax, according to the paper, and instead issue a portion of the company's earnings to shareholders who are taxed individually."
"Tice reportedly channelled these dividends into structures including an offshore trust and "a string of dormant businesses", which "reduced his exposure to tax". The paper also claimed Quidnet "did not pass the technical tests for Reit status at the time and never did", and had gained the status instead through a "legal quirk"."
"In a letter to HMRC on Sunday - which oversees firms with Reit status - Labour chair Turley said "several important questions remain unanswered". She posed a range of questions related both to Quidnet and HMRC's dealings with the firm, including whether Tice "and companies linked to him have paid all the tax they owe"."
The Labour Party has formally requested that His Majesty's Revenue and Customs investigate Reform UK deputy leader Richard Tice's tax arrangements. The Sunday Times reported that Tice avoided approximately £600,000 in corporation tax through his company Quidnet Reit Ltd by obtaining rare legal status as a real estate investment trust. This status provided a corporation tax exemption period, during which earnings were issued as dividends to shareholders. The newspaper alleged Tice channelled these dividends through offshore trusts and dormant businesses to reduce tax exposure. Additionally, the report claimed Quidnet did not meet technical requirements for Reit status but obtained it through a legal quirk. Tice maintains he complied with all relevant rules and that his firm paid UK tax according to UK laws.
Read at www.bbc.com
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