Super Fund dealt with Paradise Papers firm

Posted November 09, 2017

Jeremy Corbyn was speaking at a gathering of the Confederation of British Industry (CBI) in London following the release of the so-called "Paradise Papers", which detail offshore tax arrangements of various wealthy individuals and companies.

The Queen voluntarily pays income tax on revenue she receives.

The records show that as of 2007, the queen's personal estate invested in a Cayman Islands fund that in turn invested in a private equity company that controlled BrightHouse, a United Kingdom rent-to-own firm criticised by consumer watchdogs and members of Parliament for selling household goods to cash-strapped Britons on payment plans with interest rates as high as 99.9 percent. It refused to disclose the size of its original investment in the company, made in 2005, as its share price began to rocket.

The Duchy invested in BrightHouse via the Dover Street VI Cayman Fund, which invests in global venture capital and private equity funds - in 2005, Dover Street fund managers contacted investors to request an injection of capital, setting out what was needed and where it would be invested.

"We operate a number of investments and a few of these are with overseas funds".

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The Duchy of Lancastar, who handles the Queen's estates, has reportedly invested in retailers including BrightHouse, which has recently been criticised for "exploitation" of vulnerable customers.

The documents show the Duchy of Lancaster put 5 million pounds in the Jubilee Absolute Return Fund Limited in Bermuda in 2004, with the investment coming to an end in 2010.

"I can understand totally the commercial reasons for the way in which the Super Fund would be investing this way".

The Duchy, which is worth more than 500 million pounds, said that it received no tax advantages from investing offshore.

The fund's manager, Guardians of New Zealand Superannuation, today said it used the law firm for advice on reinsurance contracts and setting up accounts as part of its natural catastrophe mandates with external manager Elementum Advisers and Leadenhall. "The queen's personal wealth and investments mean she has a direct interest in government decisions about tax".

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"It undermines every one of us here who pays our taxes honestly and diligently".

There is nothing illegal in the investments and no suggestion that the Queen is not paying tax. The Queen's role as Head of State of so many leading secrecy jurisdictions puts her in a highly compromised position.

Such schemes are legal, but "questions may be asked about whether the monarch should be investing offshore", the broadcaster said.

Her use of offshore tax havens is likely to generate criticism from activists seeking to abolish the monarchy in favor of a republic.

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