Interesting programme on BBC last night on the governments PFI (private finance imitative). I have worked on IT projects with PFI and so I had an idea on how profitable these schemes are. But I did not realise how much. Some of the education projects are returning 70% profit per year and it is staving schools of funds because they are locked into PFI contracts. For example it cost one school £300 to get a light switch changed. (I had a similar problem working with the MOD. It took five months the visits from a team of consulates and on electrician and one builder to move a socked three feet. It cost £800. I could have done the same job in my lunch break and it took me longer to write the report requesting the move)
Not content with the high profits the PFI companies can sell there contracts onto third parties. IT GETS WORSE THAN THIS. The Home Office building is maintained by a PFI. The PFI Contract was sold to HSBC, who sold it the HSBC in Guernsey and they pay just £500 tax. Many other PFIs do the shame with the end companies ending up offshore particularly in Guernsey. For shareholders benefits they advertise vast profits, and for UK tax purposes they claim losses, how? End offshore company accounts often showed no employees or assets etc. but what they did put was Company management fees (eg £750,000) this money disappear into other offshore companies such as Panama etc. On questioned a governments PFI official it was stated that this practice is perfectly legal.
So let’s take a quick look of what the government are doing to help their cronies avoid tax. Revenue and customs sell the freehold of their property to a Bermuda company and rent it back from them. Schools maintenance sold to PFI so they can’t get a local builder to do a Jib for £18,000 they have to get the same builders via PFI management at £36,000
The responsibility for building maintenance and cleaning for the Home Office is HSBC, who can sell shares for the PFI from their Guernsey Bank so the investors do not pay ANY tax of annual returns of 18 to 75%.
I believe that the level of corruption in this country since Blair came to power has exceeded that of Italy.
Not content with the high profits the PFI companies can sell there contracts onto third parties. IT GETS WORSE THAN THIS. The Home Office building is maintained by a PFI. The PFI Contract was sold to HSBC, who sold it the HSBC in Guernsey and they pay just £500 tax. Many other PFIs do the shame with the end companies ending up offshore particularly in Guernsey. For shareholders benefits they advertise vast profits, and for UK tax purposes they claim losses, how? End offshore company accounts often showed no employees or assets etc. but what they did put was Company management fees (eg £750,000) this money disappear into other offshore companies such as Panama etc. On questioned a governments PFI official it was stated that this practice is perfectly legal.
So let’s take a quick look of what the government are doing to help their cronies avoid tax. Revenue and customs sell the freehold of their property to a Bermuda company and rent it back from them. Schools maintenance sold to PFI so they can’t get a local builder to do a Jib for £18,000 they have to get the same builders via PFI management at £36,000
The responsibility for building maintenance and cleaning for the Home Office is HSBC, who can sell shares for the PFI from their Guernsey Bank so the investors do not pay ANY tax of annual returns of 18 to 75%.
I believe that the level of corruption in this country since Blair came to power has exceeded that of Italy.
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