23 December 2023 , 17:49
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A TAX avoidance firm linked to the husband of PPE-scandal peer Michelle Mone is being wound up after it was hit with a £150,000 fine.
AML Tax (UK) Ltd, described as part of the Isle of Man-based Knox Group set up by Baroness Mone’s husband, Doug Barrowman, was penalised for not giving HMRC legally required information and is in liquidation. HMRC has said AML “aggressively promoted tax avoidance schemes in the UK for years”.
Mr Barrowman and lingerie tycoon Baroness Mone are at the centre of a PPE storm after a car-crash BBC interview this month. In it, the peer admitted she lied to the press about her links to PPE Medpro, a consortium led by her husband. And she admitted she stands to benefit from its £60million profit on a £202m pandemic deal under the Government’s “VIP Lane”, which she helped facilitate. PPE Medpro is being sued for breach of contract after allegedly supplying gowns unfit for purpose.
Michelle Mone and Doug Barrowman (BBC)Baroness Mone apologised in the BBC chat for denying her role but the couple’s appearance has been likened to Prince Andrew’s car-crash interview over his dealings with convicted sex offender Jeffrey Epstein. AML’s director, Arthur Lancaster, was a business associate of the Duke of York. Companies House shows an order was made in January to wind up the firm, with the petitioner listed as creditor HMRC. It came after HMRC brought an Upper Tribunal Case over AML’s “failure to comply with formal information notices as part of a tax investigation”.
AML was fined £150,000 in March last year. HMRC Counter Avoidance Director Mary Aiston said at the time: “AML Tax used a series of tactics to try and frustrate efforts to work out the tax legally due, in a sustained campaign of non-compliance. I’m delighted their obstructive conduct has been penalised.”
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The tribunal’s ruling said Mr Lancaster seemed “evasive” and his evidence was “confused, lacking in candour, in some respects incorrect and littered with inconsistencies”.
In January, HMRC published details of five more tax avoidance schemes, including three promoted by AML. Mr Lancaster said: “AML twice wrote to HMRC to offer to settle the fine and any outstanding tax liabilities. HMRC refused to engage and instead app-ointed liquidators. Despite the unjustified personal criticism the tribunal decided the case substantially in favour of the company. The penalty was less than 10% of that sought by HMRC.”
Mr Barrowman and Baroness Mone were contacted for comment. HMRC said: “We cannot comment on specific individuals or businesses.”