High U.Ok. political donors and a Scottish soccer star had been amongst greater than 500 secret shareholders of an offshore agency behind an elite golf membership in Scotland recognized by investigative journalism outlet The Ferret in leaked Paradise Papers paperwork.
Particulars in regards to the possession of the unique Loch Lomond Golf Membership weren’t beforehand generally known as the membership is owned and operated by a agency included within the Cayman Islands, a British abroad territory and a secrecy jurisdiction.
ICIJ’s 2017 Paradise Papers investigation was primarily based on 13.4 million leaked information from a slew of offshore monetary service suppliers, obtained by German newspaper Süddeutsche Zeitung. The Ferret’s new reporting reveals that, as of 2014, the possession of Loch Lomond Golf Membership Restricted included politicians, enterprise executives, bankers and sports activities gamers.
The findings come because the U.Ok. authorities faces ongoing strain to make sure its abroad territories and crown dependencies introduce public helpful possession registers. Lately, the U.Ok.’s so-called “second empire” has accounted for almost 1 / 4 of the world’s company tax loss, in response to the Tax Justice Community.
The Ferret famous there was no indication of tax abuse by the corporate that owns the golf membership, which is lower than an hour’s drive from Glasgow, its shareholders or the membership’s members. Nevertheless, The Ferret discovered the membership had run up losses — and subsequently prevented company tax legal responsibility — in a lot of the years for the reason that buyout.
Few of the shareholders named within the paperwork responded to The Ferret’s requests for remark. The golf membership administration and the U.Ok. authorities didn’t reply both. Ferret reporter Jamie Mann informed ICIJ he was unable to confirm whether or not the entire shareholders recognized retained shares as a result of secrecy provisions within the Cayman Islands.
The Cayman Islands has been gradual to deal with company transparency issues. The Monetary Instances reported in November that the Cayman Islands authorities missed a key December 2023 goal to implement its public helpful possession register. As a substitute, the territory just lately agreed to implement a “professional entry” register, obtainable to journalists and non-governmental organizations, by June 2025.
Loch Lomond Golf Membership — which reportedly has a first-time registration charge of as much as $165,400 — overlooks its namesake lake from a 660-acre property. The membership hosted the Scottish Open {golfing} match for greater than a decade, and consists of an 18th-century spa and a Georgian mansion.
The membership’s web site boasts that “the privilege of membership” and “alternative to play our extraordinary course” is simply prolonged to these invited by present members or the membership itself.
Members of the golf membership reportedly bought the property within the early 2010s after it was slated to be offered following its earlier house owners’ failure to restructure his money owed with the Financial institution of Scotland. A gaggle of members then purchased the membership to “retain its exclusivity,” in response to its web site. The acquisition was confirmed in 2011.
That push for exclusivity was mirrored within the 2014 record of shareholders reviewed by The Ferret, which included high sports activities gamers reminiscent of footballers Ally McCoist, Alan Shearer and Ian Wright; cricket coach Paul Collingwood; and golfer Gordon Sherry.
The record of shareholders additionally included a number of distinguished enterprise folks, from actual property magnates to executives at Barclays financial institution and accounting big Deloitte. Firms owned by a present director of the membership, businessman Robin MacGeachy, have donated hundreds of thousands of kilos to the Labour, Conservative and Liberal Democrats events since 2014, in response to The Ferret. Deceased Kuwaiti businessman Fahad Al-Rajaan, who fled to London following accusations that he had embezzled hundreds of thousands of {dollars} from Kuwait’s state pension fund, was listed as a shareholder, too.
Labour politician and get together donor Baron William Haughey was additionally on the record. Scottish newspaper The Herald beforehand reported on Haughey’s son’s enterprise connections to a guardian firm included within the British Virgin Islands.
“A guardian firm positioned within the Cayman Islands provides two distinctive benefits for Loch Lomond Golf Membership — the primary is its tax haven standing for avoidance functions, the opposite is the secrecy it affords its helpful house owners wanting to cover from transparency and scrutiny,” Claire Aston, a tax coverage knowledgeable and director of TaxWatch, informed The Ferret.
“Neither is within the public curiosity for UK taxpayers and the case exhibits the necessity for public registers of helpful possession to be carried out by the British abroad territories and Crown Dependencies.”
In November 2024, greater than three dozen members of U.Ok. Parliament despatched a letter to Overseas Secretary David Lammy calling for beforehand mandated public helpful possession registers to be carried out in British abroad territories and crown dependencies that function tax havens. The MPs cited a number of ICIJ investigations, together with the Paradise Papers, of their letter.
“Frustratingly, these with the worst observe document — together with the British Virgin Islands and the Cayman Islands — have didn’t even present a transparent timeline for establishing public registers,” the letter mentioned. “It seems that some Abroad Territories and Crown Dependencies don’t have any intention of introducing a public register.”
