Richard Tice is under scrutiny to promptly clarify accusations of his firm’s alleged tax evasion amounting to over £90,000. The deputy leader of Reform UK reportedly neglected to settle a mandated tax levy on dividends prior to transferring them to his offshore trust.
Tice, also serving as the business, trade, and energy spokesperson for Nigel Farage’s party, is said to have received excessive payments totaling at least £91,000 due to the purported non-payment of tax. The allegations center around Tice’s property investment company, Quidnet REIT Ltd, which operates under the special legal status of a real estate investment trust (REIT).
REITs are granted a tax exemption for a specified duration, with dividends distributed to shareholders who are then individually taxed. According to reports, Tice’s firm is accused of breaching tax regulations by failing to deduct a portion of dividends, known as withholding tax, before disbursing payments to shareholders, resulting in a tax deficit of approximately £91,200.
In response, Tice defended his actions, stating that he paid taxes at the highest rate on all dividends received and assured full payment to HMRC. Tax specialist Dan Neidle emphasized the importance of adhering to tax laws in the property sector, describing any oversight as careless.
Labour’s chair, Anna Turley, labeled the situation a “major scandal” and called on Tice to address the alleged tax evasion promptly. Tice countered the accusations, accusing the media of attempting to tarnish his reputation and emphasizing that HMRC received the correct tax amounts.
This controversy follows a previous investigation into Tice’s firm regarding potential avoidance of significant corporation tax payments. Despite maintaining compliance with regulations, Tice faced criticism for advocating minimal tax payments within legal boundaries. Reform UK’s home affairs spokesman, Zia Yusuf, dismissed the recent claims as insignificant administrative errors, downplaying the issue as a non-story.
In contrast, a Labour spokesperson condemned Yusuf’s dismissal of the allegations, questioning Tice’s credibility regarding tax matters and financial trust.