Sunday, 28 August 2016
Last updated 1 day ago
Jul 9 2014 | 6:18am ET
Hedge-fund manager Patrick Degorce is among more the prominent Britons on the hook for more than £500 million in back-tax demands.
Degorce, like former London Stock Exchange chief Clara Furse and soccer star David Beckham, is a client of Ingenious Media. That company made its investors directors of partnerships with some £1.3 billion in losses, which clients could use to offset their income and cut their tax bills.
The only problem is that the U.K. Treasury in 2007 barred the use of film investments to reduce tax liability, and Ingenious told clients that its efforts to overturn the decision have come to naught. “We have done everything we can to lobby for changes to the accelerated payment proposals as the bill has progressed through Parliament, but without success.”
Ingenious has warned its 1,300 clients, both past and present, to expect bills amounting to their total tax savings, plus interest, as soon as this month.
If he should get one, it will be Degorce’s second run-in with the U.K. Revenue & Customs in as many years: Last year, a British Tax Tribunal ordered the Thélème Partners found and The Children’s Investment Fund veteran to pay £7.5 million for using film rights as an impermissible tax shelter.