Reform UK’s deputy leader, Richard Tice, a prominent donor with a substantial wealth, is under scrutiny for companies under his ownership that reportedly owe nearly £100,000 in corporation tax.
Tice managed four shell companies that allegedly avoided paying taxes from 2020 to 2022, a strategy that is said to have financially benefited his investment firm, which subsequently made significant contributions to Reform UK.
The tax controversy revolves around Tice’s property investment company, Quidnet, for which he sought Real Estate Investment Trust (REIT) status, exempting it from corporation tax. However, this tax exemption did not extend to four associated ‘Tisun’ companies linked directly to Quidnet, which, according to reports, did not fulfill their tax obligations despite holding shares in Quidnet.
These companies, named Tisun 1, Tisun 2, Tisun 3, and Tisun 4, were established to receive payments from Quidnet. Tisun Investments Ltd, one of these entities, reportedly transferred a substantial £1.1 million to the Reform party upon receiving dividends, as detailed by a report in the Sunday Times, marking the first direct linkage between Tice’s tax affairs and the party’s finances.
Tax expert Dan Neidle characterized the situation as a basic tax oversight rather than a complex issue, emphasizing the apparent tax liability of around £98,000, plus additional interest charges. He suggested that penalties for negligence might be imposed by HMRC.
In a contrasting scenario, Tice had previously called for the resignation of Angela Rayner, the former Deputy Prime Minister, for tax-related shortcomings amounting to less than half of what his companies are now accused of owing. Rayner stepped down following revelations of underpaid taxes on her Hove property, attributed to intricate trust arrangements for her disabled son.
Tice, maintaining that he always sought professional tax advice and complied with recommendations, defended his business record and tax practices. He acknowledged the importance of tax efficiency in business operations, noting the possibility of errors in a long career but expressing willingness to rectify any discrepancies in tax payments.
Amid the ongoing scrutiny, Tice condemned the investigation into his tax affairs as a “smear campaign,” emphasizing his extensive international business experience and contributions to job creation and tax revenue over the years. He criticized what he perceived as efforts to tarnish his reputation and deter successful business figures from engaging in politics, contrasting this with what he described as a lack of business acumen in the current Labour Cabinet.
Asserting his dedication to public service and political endeavors, Tice conveyed his focus on serving constituents and participating in local election campaigns, implying that his motivations extend beyond financial gain.
