A complex tax avoidance scheme that moves income offshore has been exposed by HMRC, with anyone who has joined the arrangement warned to get out of it as soon as possible.
The scheme – linked to businessman Darren Patrick-Green – involves contractors joining Singapore registered Procorre LLP to avoid paying income tax and National Insurance.
These workers and their Personal Service Companies (PSCs) enter into contracts to provide services to their clients as usual.
The PSCs invoice these clients and transfer the money received to Procorre LLP.
Procorre LLP then deducts a fee before returning the rest of the income to the individuals or their PSCs. This money comprises various forms of payments including bank transfers from multiple sources and pre-paid cards.
Darren Patrick-Green (also known as Darren Green) is the Ultimate Beneficial Owner (UBO) of Corre Holdings SA (CHSA), a Swiss-based firm which is the majority owner of Procorre LLP. CHSA is also suspected by HMRC of involvement in further arrangements, potentially including the acquisition of users’ PSCs.
Also named on GOV.UK today for being in control of Procorre LLP is Jason Bougourd and Alizeh Nanji.
Jonathan Smith, HMRC’s Director of Counter Avoidance, said: “Tax avoidance schemes are cynically marketed as clever ways to pay less tax. The truth is they rarely work in the way the promoters claim and it is the users that can end up with unexpected tax bills.
“We would urge anyone who thinks they have entered these schemes to contact us as soon as possible to get help.”
