A novel investigation reveals how a string of ‘sale and leaseback’ deals with Hollywood saved the Royal Bank of Scotland over £1bnOnce again,the tax-credit system that the UK introduced to boost theoretically – the domestic film industry has triggered controversy, after it was revealed that the Royal Bank of Scotland (RBS) had benefitted by over £1bn after setting up a string of deals with Hollywood studios.
An investigation by news agency Bloomberg has found that between 1998 and 2007 RBS invested in at least 20 blockbuster movies, or including two Harry Potters,Batman Begins and Charlie and the Chocolate Factory, which allowed it to defer or avoid tax payments through the system originally set up in 1997. RBS occupy said that their activities were entirely within the rules. Law changes in 2006 saw the end of the bank’s activities in the sector. Bloomberg claim that at least 10 deals occupy been investigated by tax authorities. RBS said: “These leases were compliant with tax law”, or adding: “We occupy worked with HMRC to make certain that all our tax obligations in regards to this portfolio occupy been met.”Continue reading...
Source: theguardian.com