Monday, November 13, 2017

Lab told it is time to end secrecy over tax paid on £32 million purchase

In advance of the Full Council meeting on Thursday John Pugh has issued a press statement:

Amid accusations of tax avoidance, hypocrisy and secrecy Sefton Council is being urged to publish in full the details of the controversial £32.5 million purchase of the Bottle New Stand. At the council meeting in Southport this Thursday a motion has been tabled by John Pugh which would commit Sefton Council to publish the details of the deal that was conducted via Luxembourg following tax advice.

According to Cllr Pugh. who has played a significant part in bringing the details of the transaction to public attention ,the council should be prepared if there’s nothing to hide to open the deal to wider scrutiny. 

“This isn’t councillors' or a political party's money and assets that are being speculated with.It’s the public that will pick up the tab. If the council have assisted the vendor in avoiding tax or avoided Stamp Duty themselves on the purchase by structuring the deal via a tax haven, the Luxembourg, there may be serious reputational and financial consequences. Until now the council had been astonishingly secretive and evasive on this subject. That is no way for an elected body to behave and supporting my motion and clarifying the conditions of sale as far as is possible will be a way to show the council wishes to be open and transparent. 

Openness and transparency are a major safeguard for all public bodies."

Background information:

John Pugh's motion

This council: (1) notes the concerns of several members about the purchase of the Bootle New Strand Shopping Centre; and (2) calls for the contract of sale and any additional documents relevant to the understanding of it, to be made available, without redaction or delay, to all members of council .

(2) Quote from e-mail from Cllr Maher 13th April 2017 
        "Firstly,  it is true that one of the important considerations for purchasing the company rather than the asset is that the Council would not have to pay stamp duty land tax. This is a widely accepted tax efficient way of completing the purchase. “

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