Reform’s Richard Tice ‘happy to put things right’ after ‘he failed to pay £100k in corporation tax’
Richard Tice said he was “always happy to put things right” and would pay the debt “if the figures need to be re-checked” following reports that he had failed to pay almost £100,000 in corporation tax.
Reform’s deputy leader ran four shell companies that did not pay any taxes on their profits between 2020 and 2022. Sunday Times reported.
This benefited the investment company, which continued to make large donations to the party, the newspaper said.
A long career with multiple businesses “is bound to involve some mistakes,” Mr. Tice said in a statement. He said he would be happy to “pay the debt” if necessary.
The statement comes after Reform UK reported last week that Mr Tice’s company’s failure to pay tens of thousands of pounds of tax on dividends was a “minor administrative error”.
The latest report alleged that Mr. Tice used the Real Estate Investment Trust (REIT) status of his Quidnet real estate company to save taxes.
REIT companies are exempt from UK corporation tax on rental profits and capital gains from renting property.
Quidnet paid £514,000 in distributions to four companies, according to the report. While Quidnet, which has REIT status, would be exempt from corporate taxes, other companies would not be exempt.
The newspaper’s investigation concluded that the payments were incorrectly treated as tax-exempt ordinary dividends when they should have been treated as taxable REIT property income distributions.
This means he owes £98,000 in corporation tax on income, according to the report compiled with Tax Policy Associates, a think tank that is helping with the investigation.
Mr Tice said he had “always paid whatever I was advised to pay” but that he would be “happy to make things right” if necessary.
“In a highly successful career spanning 40 years, I have done business in 12 countries on three continents and managed more than 150 companies,” he said.
“The truth is: Tax efficiency is a fundamental corporate responsibility and duty to shareholders. In a long career involving multiple businesses, some mistakes are inevitable.
“Naturally, I’m always happy to put things right and if the figures need to be re-checked I will of course pay my dues – more or less.”
Just months ago, Mr. Tice said that Angela Rayner should resign if she had “moral decency”; the then deputy prime minister admitted he underpaid stamp duty when he bought his £800,000 flat in Hove; this he blamed on the legal advice he received at the time.
Last week Reform UK said it was a “minor administrative error” when Mr Tice’s company was reported to have failed to pay tens of thousands of pounds of tax on dividends.
Mr Tice received at least £91,000 after property investment company Quidnet REIT Limited failed to pay the required 20% tax before dividends were paid to him and his offshore trust in Jersey, The Sunday Times reported.
The Boston and Skegness MP said in
Labor had previously asked HMRC to investigate his tax affairs after The Sunday Times reported that he had “avoided nearly £600,000 in corporation tax” through his property company.
Independent Mr Tice and Reform England were approached for comment.
