UK investment head faces Russian tax allegations

Russia’s biggest foreign portfolio investment fund – headed by British fund
manager William Browder – is facing a criminal investigation relating to
underpayment of tax.

Russian officials from Moscow’s Interior Ministry yesterday revealed that the
country’s law enforcement authorities were
investigating
whether a firm linked to Browder’s Hermitage Capital Management was responsible
for underpaying £22m in tax.

According to the officials, Browder is being targeted for being behind the
scheme, the
FT
reported.

‘This is a serious sum of money and it would destroy the business reputation
of anyone in the West,’ a ministry official said.

Hermitage denied underpaying taxes.

‘Taxes were paid in full compliance with Russian law,’ Hermitage said, adding
that the company also said that the company being investigated was not part of
its fund but rather an investment fund being advised by a Hermitage affiliate.

Further reading:

Hermitage
Comes Under Fire in Tax Probe