Bankers held in tax probe into film cash
A SERIES of City bankers have been arrested in a probe into tax evasion related to film financing.
Four current and one former member of staff at the investment banking arm of Royal Bank of Scotland, as well as three London workers from US bank Jefferies and one from commodities broker Marex Spectron are believed to have been held.
Officials from HM Revenue & Customers (HMRC) carried out several raids last week after looking into allegations that bankers had used film finance schemes to avoid paying taxes. Around 16 people are thought to have been arrested.
It comes after HMRC launched a series of crackdowns to ensure wealthy people pay sufficient tax as the Treasury struggles to cut the yawning budget deficit. Footballers, property dealers and builders are among those to have been targeted after political criticism of the agency.
Last week’s banker raids were in connection with the financial affairs of the individuals, rather than their employers.
The arrests are believed to have been made on Wednesday at the bankers’ homes across London and the Home Counties.
A spokesman for HMRC said: “As a result of an ongoing HMRC investigation into tax-related criminal offences, HMRC has arrested a number of people, some of whom work for UK banks. This investigation relates to the actions of the people arrested in relation to their own financial affairs and is not connected to the business activities of the banks.”
RBS said: “We cannot comment on an ongoing investigation but are fully co-operating with HMRC.”
RBS, 83 per cent taxpayer-owned, is scaling back its riskier investment bank under pressure from the Treasury. It recently agreed to sell its legendary stockbroker Hoare Govett to Jefferies for £1.
Last week RBS chief executive Stephen Hester said he had considered quitting during the furore over his bonus. He ultimately turned down the payout, worth almost £1m in shares, after chairman Sir Philip Hampton waived a bonus that was potentially worth £1.4m.
Marex declined to comment on the HMRC inquiry. Nobody from Jefferies could be reached yesterday.