Tax Affairs Of UK 'Efficiency Tsar' Under Scrutiny

by Amanda Banks, Tax-News.com, London

25 August 2010

Liberal Democrat members of the UK parliament have called for an investigation into the tax affairs of newly appointed efficiency advisor, Sir Philip Green.

Green, owner of the profitable Arcadia group, which includes the high street fashion chains TopShop and Dorothy Perkins, was selected to head a review into government spending cuts, but the move has sparked much criticism. The controversial appointment was inflamed further by Deputy Prime Minister Nick Clegg commenting that more must be done to tackle tax avoidance at a recent government event.

Clegg’s comments have prompted Lib Dem MPs to demand a review of Green’s tax affairs.

Roger Williams, Lib Dem MP for Brecon and Radnorshire, said that while Green was "very capable", the reports of his tax arrangements should be "looked at" by HM Revenue and Customs.

At the heart of the criticism is the fact that Green’s wife and owner of Arcadia on paper lives in Monaco. In 2005 Arcadia paid out a GBP1.2bn dividend to Green's wife which, it is alleged, deprived the UK Treasury of many millions of pounds.

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