Business · Companies · 4 hrs ago
Investigations allege Deloitte helped conceal Abramovich-linked assets and income
Investigations based on leaked documents and emails allege that Deloitte’s Cyprus office helped conceal assets and income linked to Russian billionaire Roman Abramovich.
The documents concern companies in Cyprus that held assets and funds connected to him.
In one case, paperwork was reportedly backdated to make valuable property and other assets appear to belong to a company in the British Virgin Islands, where financial statements did not have to be published.
In another, records were changed to make billions of dollars appear to be managed for a parent company rather than owned by a Cyprus company, which could reduce its tax bill.
A separate alleged plan involved moving $10 billion in assets off a Cyprus company’s accounts.
Abramovich’s lawyers denied wrongdoing and said he relied on advice from advisers and Deloitte’s Cyprus office.
Deloitte Cyprus said it complied with local law and could not comment on the specific allegations because the records were no longer accessible.
Investigations by the BBC and the Bureau of Investigative Journalism allege that Deloitte’s Cyprus office helped conceal assets and income linked to Roman Abramovich.
The reports say documents were altered or backdated to move assets out of public financial statements and reduce potential tax liabilities.
The investigations relied on leaked documents and emails from Cyprus-based corporate services provider MeritServus.
Abramovich’s lawyers denied wrongdoing, while Deloitte Cyprus said it had complied with local law.
- Who
- Deloitte’s Cyprus office and advisers to Russian billionaire Roman Abramovich are implicated in the allegations.
- What
- Investigations allege that documents were altered or backdated to conceal Abramovich-linked assets and income and reduce tax liabilities.
- When
- The reported episodes date from 2003 to 2006.
- Where
- The companies involved were based in Cyprus, with assets or parent companies linked to the British Virgin Islands.
- Why
- The reports say the schemes aimed to keep assets out of public financial statements and avoid or reduce tax liabilities.
Investigations by the BBC and the Bureau of Investigative Journalism
Abramovich’s lawyers and Deloitte Cyprus
Allegations
Investigations by the BBC and the Bureau of Investigative Journalism
The investigations allege that Deloitte’s Cyprus office reviewed documents used to conceal assets and that advisers devised plans to reduce tax liabilities.
Abramovich’s lawyers and Deloitte Cyprus
Abramovich’s lawyers denied wrongdoing, and Deloitte Cyprus said it had always complied with local law.
Responsibility
Investigations by the BBC and the Bureau of Investigative Journalism
The reports cite leaked documents and emails describing Deloitte’s involvement and advisers’ plans.
Abramovich’s lawyers and Deloitte Cyprus
Abramovich’s lawyers said he relied on advice from his advisers and Deloitte’s Cyprus office; Deloitte said it could not comment on the specific allegations.
Kravin Investments’ accounts held about $2 billion Abramovich had received from selling assets in Russia.
Advisers decided to alter Kravin’s financial statements and accounting records retroactively, according to the investigations.
Cyprus passed a law requiring companies to publish financial statements.
MeritServus proposed backdating documents concerning Electus Investments’ assets, according to leaked emails.
- Amiscan Investments’ reported assets
- $672 million
- Amiscan after assets were removed
- $75,000
- Kravin Investments’ accounts in May 2003
- About $2 billion
- Electus Investments’ accounts
- $10 billion
- Electus after assets were removed
- $145,000
- Main leak source
- MeritServus, a Cyprus-based corporate services provider
What people are saying
no longer accessible
Sources
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