Cyprus police investigate Abramovich’s finances after leaked records raise tax questions
Cyprus police have opened an investigation into Roman Abramovich’s financial affairs after reporting by the BBC and the Bureau of Investigative Journalism raised questions about whether documents were falsified to conceal his wealth and evade tax. The inquiry matters because it will assess whether criminal acts occurred and may examine the conduct of any people or companies involved.
The police Financial Intelligence Unit has begun gathering evidence, and investigators expect the inquiry to last several months. Leaked records indicate that accounts signed off by Deloitte Cyprus in 2006 removed assets worth $672m (£508m) from company accounts, and appear to show advice on a tax scheme. Abramovich’s lawyers say he denies evading tax or hiding his fortune, and that there is no evidence he knew of or authorised falsified documents; Deloitte Cyprus says it complies with the law and cannot comment on records no longer accessible.
In short
- Cyprus police are investigating Abramovich’s financial affairs.
- The inquiry is expected to last several months.
- His lawyers deny he knew of document falsification.
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The case for
A thorough investigation is justified because the leaked records raise serious questions about whether assets were removed from company accounts and whether a tax scheme was used to conceal wealth. Establishing what happened, and whether anyone knowingly falsified documents or evaded tax, serves the public interest and helps ensure financial rules are applied fairly.
The case against
The allegations remain unproven, and the records alone do not establish that Abramovich knew of or authorised any falsification or tax evasion. An investigation can be warranted while still requiring care not to treat suspicion as guilt, particularly when the people and companies involved may have had different roles and the documents’ meaning is contested.
Explained simply
Roman Abramovich is a Russian-born businessman who built a fortune through investments, including in the oil and metals industries. His finances have involved companies and accounts in several countries, which can make it difficult for authorities to establish who owned particular assets and how they were taxed.
Cyprus is an international financial centre, where companies can hold assets and manage investments. Tax rules require people and businesses to report income and assets accurately; deliberately falsifying accounts or evading tax can be a crime. Deloitte is an accountancy firm that audited company accounts, while lawyers represent Abramovich in legal matters.
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Originally published by BBC World as “Cyprus police open investigation into financial affairs of Roman Abramovich”.