CPS chief’s husband is member of ‘tax loophole’ film investment scheme
Neil Saunders, whose wife is the Director of Public Prosecutions, is a member of a controversial scheme being investigated by the taxman, The Telegraph can disclose
The Director of Public Prosecutions’ husband is a member of a controversial “tax loophole” scheme that has been investigated by the taxman, it can be disclosed.
Neil Saunders, a defence barrister, is listed by Companies House as a member of a film industry investment scheme which is being pursued by Her Majesty’s Revenue and Customs (HMRC).
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Similar companies have been described by the HMRC as “tax avoidance schemes” which, a minister added, were an “affront to the vast majority of businesses and people who pay what they owe”.
Alison Saunders, the DPP, is under mounting pressure over her running of the Crown Prosecution Service.
She is facing the prospect of an unprecedented appeal by a police force against her decision not to prosecute Lord Janner of Braunstone, the Labour peer, over a series of alleged child sex crimes, as well as a separate challenge by victims.
Her handling of the Operation Elveden prosecutions of tabloid journalists has also been criticised.
It is not known whether Mr Saunders invested capital in Scion Films Sale and Leaseback Sixth Limited Liability Partnership, based in Soho, central London.
Companies House records show he became a “member” of the partnership in October 2006.
Latest financial statements from Scion Films show it claimed to hold more than £100 million in members’ capital and to have returned an operating profit of £1.6 million last year.
Commercial lawyers representing clients of sale and leaseback companies said investors with Scion Films had received large tax bills from HMRC and had been informed the company’s activities were being examined.
The complex schemes involved clients investing capital and taking out a loan, which allowed them to make interest relief claims against other income.
But the HMRC, explaining how a rival scheme operated, said: “In reality, the borrowed money simply earned interest, which was then filtered through the partnerships to investors to cover the interest on their loans.
“This was dressed up as a trading transaction in order to enable the partners to claim tax reliefs.”
HMRC won a case at the Court of Appeal against in February against another scheme, Eclipse Film Partners (No 35) LLP whose investors included Sir Alex Ferguson, the retired Manchester United manager, and Sven-Göran Eriksson, the former England football manager.
Mr Saunders did not response to a request for a comment.
Scion Films also failed to respond to an approach by the Telegraph.
