Abramovich aides and Deloitte Cyprus accused of falsifying asset records
Investigations into leaked records allege that Roman Abramovich’s aides and Deloitte Cyprus helped falsify documents to conceal assets and evade tax. Abramovich denies wrongdoing, while Deloitte Cyprus says it complies with applicable laws.
theguardian.comRoman Abramovich aides falsified paperwork to disguise assets and dodge tax, records suggest
bbc.comDocuments falsified to evade tax on Abramovich's wealth, BBC finds
Alleged backdating scheme
Investigations by the Guardian and BBC allege that aides to Roman Abramovich, including Deloitte Cyprus staff, helped falsify paperwork concerning his offshore businesses to disguise assets and avoid tax. The Guardian says records suggest documents were backdated to make agreements and transactions appear to have occurred years earlier.
The Guardian’s findings draw on the Cyprus Confidential leak of more than 500,000 documents. It reports that aides and accountants moving funds between offshore jurisdictions used tactics from 1999 until at least 2013 that experts say may have constituted fraud and tax evasion.
Assets and tax liabilities
The BBC reports that accounts signed off by Deloitte Cyprus caused superyachts, mansions and private jets worth $672 million (£508 million) to disappear from Abramovich’s company accounts. Financial services barrister Andrew Mitchell KC described the evidence presented by BBC Panorama as showing “straightforward” tax evasion.
The Guardian identifies Cyprus-based Kravin Investments as one vehicle involved. It says Kravin received $3 billion in May 2003 and retained about $2 billion, with funds held in a bank account or lent to other companies earning interest that was, in theory, taxable in Cyprus. Records suggest advisers subsequently discussed changing its 2003 and 2004 financial statements to address a potentially large tax liability.
Denials and responses
Abramovich’s lawyers deny that he evaded tax or concealed his fortune. They told the BBC that its investigation provided no evidence he knew about, authorised or directed document falsification, and said it was legitimate for him to rely on professional advice.
Eugene Tenenbaum, Abramovich’s London-based aide whom the Guardian links to apparent backdating, also denied wrongdoing and said he relied on Deloitte Cyprus’s specialist advice. Deloitte Cyprus said it complies with applicable laws and told the Guardian it could no longer access the relevant material because of the time elapsed.
Sanctions and scrutiny
Abramovich’s affairs are restricted by UK and EU sanctions imposed in response to Russia’s war on Ukraine. The BBC reports that £5.4 billion of his assets remain frozen in Jersey, where a criminal investigation has been under way for four years. His lawyers deny the allegations in that investigation and say it was undertaken for political purposes.
