Secrecy is one of the benefits of tax havens – and it is something valued by Sir David and Sir Frederick Barclay, owners of the Daily Telegraph, who live on Brecqhou in the Channel Islands, and Monaco.
The Paradise Papers include minutes of a meeting in Hamilton, Bermuda, that show the 82-year-old billionaire twins seeking to keep their financial dealings out of sight. The meeting in 2004 of the Bermuda-based Reid Finance Ltd dealt with “a change of nominee ownership” involving BI Ltd.
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The shares had been held since 1989 by David, Frederick and David’s wife Zoe. The meeting agreed to transfer the “beneficial ownership” of the shares from Zoe to the two brothers. The move meant Reid appeared as the shareholder while the brothers – the “beneficial owners” – remained in the background. The minutes describe Reid as a company used “as nominee for several of our clients who do not wish their names to appear on the share register”.
There is nothing illegal in this. But it highlights one of the criticisms of the sector. Pressure has been growing from politicians and transparency campaigners to stop the real owners of companies hiding behind bankers and lawyers.
Prem Sikka, professor of accounting at the University of Essex, said: “Nominee shareholdings add opacity and make it impossible for the authorities to call the ultimate controllers and beneficiaries of financial flows to account.”
A spokesperson for the Barclays said: “Thanks for bringing this to our attention and giving us the chance to respond. On this occasion we will not be commenting.”