London tax evasion trial examines barrister's trust structure and HMRC claims

Traders Union
All News
Financial News
London tax evasion trial

Highlights

Venables allegedly used partnership and trust structures from January 2013 to November 2022 to transfer income and avoid paying income tax.
The prosecution claims Venables withheld nearly £2 million in tax owed to HMRC by routing payments, such as school fees and gardener wages, through trusts.
Venables, suspended from tax practice and facing three counts of cheating HMRC, states the criminal case has devastated his professional career.

Court testimony outlines trust and partnership arrangements

As reported by Financial Times, Venables told jurors at Southwark Crown Court on Thursday that he used a partnership and a network of trusts to channel money to family members and pay for services without triggering income tax liabilities.

The jury hears that the arrangements included paying private school fees for his niece, now a student doctor, and compensating an unemployed man who worked as his gardener. The court is told both received money through trusts that Venables used to reduce income tax.

Venables says that paying the gardener as a direct employee would have left both parties liable for income tax. He describes the gardening arrangement as informal, based on trust, and designed mainly for tax efficiency and less bureaucracy and red tape.

He also tells the court that he came from a very poor family and was the only relative with significant money, describing the trusts as a way to confer benefits on his extended family.

Prosecution case and professional fallout

Venables, 78, faces three counts of cheating His Majesty's Revenue & Customs of income tax by allegedly using the partnership structure and trusts to disguise his true income. Two charges run from January 2013 to November 2022, while a third begins in 2018.

The prosecution alleges the structure was deliberately designed to withhold nearly £2 million in tax owed to HMRC. Earlier in the trial, jurors hear that Venables once acted for clients including Diana, Princess of Wales, as well as aristocrats, sports stars and major business figures.

Venables says he enjoyed a rapid rise after beginning his career at the Bar in 1979 and obtained KC status in just over a decade. Despite specialising in tax, he says HMRC never instructed him in a case, although he did advise other government departments.

He tells the court the prosecution has destroyed his tax practice and suggests the case has effectively removed him from the profession. The trial continues.

Our earlier article on Madison Square Garden’s property tax exemption explained how the arena’s long-running tax break has reportedly cost New York City taxpayers about $1 billion since 1984, even as Knicks Finals ticket prices surged. We noted that the playoff-driven revenue boom and eye-watering resale prices have renewed questions about who ultimately benefits when high-profile venues receive preferential tax treatment.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.