Reform Deputy Leader Richard Tice has come under intense scrutiny this week, after it was revealed that his company failed to pay a £91,000 tax bill to HMRC. Though the right-wing politician has maintained his innocence, tax experts are adamant that the law has been broken.
Richard Tice and his taxes
Last month, the Sunday Times reported that Tice had “avoided nearly £600,000 in corporation tax” through his property company, Quidnet Reit Ltd. Tice used a complex corporate structure that allowed his company to avoid the tax on more than £3 million in profits.
The arrangement involved registering a property company as a Real Estate Investment Trust despite failing to meet the typical eligibility rules – a structure that tax experts described as “highly aggressive tax planning.”
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Tax experts highlight huge issue with Quidnet
Quidnet REIT Ltd, founded and owned by Tice, did not pay the 20 per cent “Withholding Tax” before channelling profits to himself and his trust. According to Tax Policy Associates, who investigated these figures further, a serious legal obligation to make this payment has not been met.
“Quidnet was required by law to withhold approximately £120,000 of tax from those dividends and pay it to HMRC. But we believe it’s clear from the company’s accounts and public filings that Quidnet did not pay this tax.”
“Mr Tice has refused to answer the question directly, instead saying that he paid income tax on the dividends. That’s not an answer: the company was legally required to pay tax; the law doesn’t permit REITs to opt to defer their tax obligations.” | Tax Policy Associates
Dan Neidle is the founder of TPA, and he has also cast doubt over Richard Tice and his defence:
“It seems Mr Tice’s view is that *he* paid income tax, so it doesn’t matter that Quidnet didn’t. That’s not how it works. It would be awfully convenient if REITs didn’t have to withhold tax from dividends, and their shareholders could just choose to pay tax later. That’s not permitted.” | Dan Neidle
Past statements on tax come back to bite Richard Tice
Mr. Tice has also been vocal in encouraging Brits to ‘pay as little tax as possible’. However, when Angela Rayner was found to have underpaid roughly £40,000 in stamp duty on a property purchase, he voiced his desire to see the former Deputy PM removed from her role.
Perhaps assuming he’ll apply those same, rigorous standards to himself is wishful thinking – something which Ed Davey has already called for.