Roman Abramovich, the sanctioned Russian oligarch, is facing renewed scrutiny after a group of MPs urged HM Revenue & Customs (HMRC) to investigate allegations that he may owe up to £1 billion in unpaid taxes.
The intervention follows reports by the BBC and the Bureau of Investigative Journalism indicating that offshore investments worth billions of pounds may have been effectively managed from the UK, thereby incurring a domestic tax liability.
In a letter to HMRC, Joe Powell, the Labour MP who heads a parliamentary group on fair taxation, pressed for a “proper investigation” in light of evidence suggesting that some of Abramovich’s British Virgin Islands (BVI) ventures were, in practice, administered on home soil. The letter pointed to leaked files revealing investments worth $6 billion routed through the BVI, yet allegedly overseen by individuals based in the UK, potentially triggering UK tax obligations.
HMRC responded by stating it is “committed to ensuring everyone pays the right tax under the law, regardless of wealth or status.” Abramovich’s lawyers, meanwhile, maintain that he “always obtained independent expert professional tax and legal advice” and “acted in accordance with that advice.”
The leaked papers—examined by the BBC, The Guardian, and the Bureau of Investigative Journalism as part of the ‘Cyprus Confidential’ project—suggest that a close associate of Abramovich, the British citizen Eugene Shvidler, may have exercised considerable authority over BVI-registered investment vehicles. Under UK law, if an offshore company’s strategic decision-making occurs within the UK, that firm could be subject to British taxes.
Abramovich, long known for his ownership of Chelsea FC—whose funding has also been linked to the offshore structure—was sanctioned by the UK government in 2022 over his ties to the Kremlin. While offshore companies can legitimately reduce tax bills if fully managed and controlled outside the UK, MPs claim that the sums in question demand a full investigation.
“Given the scale of the sums involved, ensuring that any unpaid taxes are recovered is a matter of public interest,” Powell’s letter reads, referencing the need for extra public funding in light of current economic pressures.
Lawyers representing Shvidler and Abramovich insist the arrangements were underpinned by professional advice and fully compliant with relevant regulations. However, critics argue that leaked documents present a “tax dodge” masquerading as a standard offshore investment, prompting fresh calls for HMRC to step up efforts to reclaim any revenue rightly due.
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Abramovich faces fresh calls for HMRC probe over potential £1bn tax bill