Deloitte accused of falsifying documents for Abramovich tax evasion

Leaked documents indicate that Deloitte, the world's largest accountancy firm, allegedly falsified documents to help Roman Abramovich hide his wealth and evade taxes. The findings, revealed by BBC Panorama and the Bureau of Investigative Journalism, suggest Deloitte Cyprus signed off on accounts for Abramovich's Cypriot company, Amiscan Investments, in 2006 after backdating paperwork. This manoeuvre allegedly removed assets valued at $672m (£508m) from the company's accounts, leaving only $75,000.

Scheme to Evade Tax Bills

The documents suggest Deloitte also advised on a scheme to evade a significant tax bill on Abramovich's wealth through the falsification of documents. Barrister Andrew Mitchell KC, an expert in financial services law, reviewed the evidence and stated that the scheme was "straightforward" tax evasion and "it couldn't be more blatant."

Roman Abramovich's lawyers have stated that he denies evading tax or concealing his fortune. They also assert that no evidence has been provided to show he knew about, authorised, or directed the falsification of any document, and that it was legitimate to rely on professional advice. Deloitte Cyprus has responded by stating it "acts in compliance with applicable laws."

Concealing Assets from Transparency Laws

The investigation uncovered thousands of documents concerning Abramovich's finances and offshore companies administered from Cyprus between 1995 and 2022. A specific instance cited involves Amiscan Investments in 2006. A new law in Cyprus at the time required company accounts to be made public, threatening to expose Abramovich's wealth. Deloitte Cyprus had prepared draft accounts for 2003 detailing $672m in luxury assets, including properties and vehicles.

To circumvent the transparency law, Abramovich's associates and MeritServus, a corporate services firm that previously had ties to Deloitte, devised a plan to transfer these assets to Amiscan's parent company in the British Virgin Islands. This transfer was allegedly backdated by three years to 2003 to appear as if it occurred before the new law. Deloitte Cyprus reportedly reviewed these backdated documents, deeming them "adequate" to remove the assets from Amiscan's accounts. When the 2003 accounts were finalised in 2006, the luxury assets had disappeared, with only $75,000 remaining.

Professor Lord Sikka of the University of Sheffield described such actions as a "violation of a statutory duty" and "pretty scandalous" for misrepresenting transaction dates and failing to publish true and fair accounts.

Tax Evasion Scheme for Investment Income

Further evidence suggests backdated documents were used in a tax evasion scheme involving another of Abramovich's Cypriot companies, Kravin Investments. This company held nearly $2bn in 2003 and had earned substantial interest, making it liable for Cypriot taxes. An email from MeritServus in August 2005, following a meeting with Deloitte, indicated a plan to "change the financial statements and the accounting records accordingly for 2003 and 2004" to avoid tax on this interest.

MeritServus informed Abramovich's associates that "Provisional Tax Assessments for 2005" would be filed showing Kravin earning no income from its funds. Subsequently, backdated documents were created to falsely suggest Kravin was merely holding and investing the funds for its parent company in the British Virgin Islands, thereby avoiding tax liability in Cyprus. Deloitte noted in a September 2005 email that "certain changes will have to be made to the accounts (bank account balances, interest income, profit and loss account)" due to these backdated alterations.