UK: Complex offshore tax avoidance scheme revealed by HMRC

A complex tax avoidance scheme that moves income offshore has been exposed by HM Revenue and Customs (HMRC) today (29 February 2024), with anyone who has joined the arrangement warned to get out of it as soon as possible.

The scheme – linked to businessman Darren Patrick-Green – involves contractors joining Singapore registered Procorre LLP to avoid paying Income Tax and National Insurance.

These workers and their Personal Service Companies (PSCs) enter into contracts to provide services to their clients as usual.

The PSCs invoice these clients and transfer the money received to Procorre LLP.

Procorre LLP then deducts a fee before returning the rest of the income to the individuals or their PSCs. This money comprises various forms of payments including bank transfers from multiple sources and pre-paid cards.

These payments should be subject to Income Tax and National Insurance Contributions and anyone involved in this scheme should contact HMRC as soon as possible and leave the arrangement.

Darren Patrick-Green (also known as Darren Green) is the Ultimate Beneficial Owner (UBO) of Corre Holdings SA (CHSA), a Swiss-based firm which is the majority owner of Procorre LLP. CHSA is also suspected by HMRC of involvement in further arrangements, potentially including the acquisition of users’ PSCs.

Also named on GOV.UK today for being in control of Procorre LLP is Jason Bougourd and Alizeh Nanji.

Jonathan Smith, HMRC’s Director of Counter Avoidance, said, “Tax avoidance schemes are cynically marketed as clever ways to pay less tax. The truth is they rarely work in the way the promoters claim and it is the users that can end up with unexpected tax bills.

“We would urge anyone who thinks they have entered these schemes to contact us as soon as possible to get help.”

More detail about this scheme can be found on HMRC’s list of named tax avoidance schemes, promoters, enablers and suppliers on GOV.UK. Two other schemes were also named today.

HMRC urges taxpayers to be vigilant and to stay away from tax avoidance. The Don’t Get Caught Out campaign reveals the consequences of using tax avoidance schemes which could be unexpected tax bills, interest and penalties.

If anyone has used a tax avoidance scheme promoted by any firm HMRC has named, please contact HMRC by emailing: CAGetHelpOutOfTaxAvoidance@hmrc.gov.uk

11 October 2024

UK: UK & Seychelles Announce Beneficial Ownership Transparency Initiative

“We want to revise the beneficial ownership database, and we are being assisted by the U.K. to implement a new framework,” said Secretary of State Patrick Payet, according to the government-funded Seychelles

Read More
20 January 2024

EU: Greens chief warns new debt rules will strengthen EU far right, Putin

Ahead of a vote in the European Parliament on new debt rules for EU countries, the Greens co-president Philippe Lamberts warned against the “end of the European Union as we know it” in a worst-case

Read More
20 January 2024

GREEN FINANCE: Asset managers’ backing of ESG resolutions falls to three-year low

Asset managers backing resolutions on important environmental and social issues as company shareholders has fallen to a three-year low, according to a ShareAction report. Only eight out of 257 resolutions

Read More
29 April 2024

CHINA: China and Europe agreed on the development of the circular economy

The recently presented plan outlines the joint efforts of the EU and China to implement the Memorandum of Understanding between the union and the world’s most populous country on the circular

Read More