"Richard Murphy, a tax expert, said: “I can think of no reason why you would adopt this structure other than for tax avoidance.”
Despite its high profile, Smythson is a relatively small retailer, with just 15 outlets, mostly of them in London, although it also has shops in the US, France and Asia. In the 12 months to the end of March 2014, the company recorded a turnover of just under £30 million and reported a loss of £1.2 million.
Molly Scott Cato, a Green party MEP, who has been a frequent critic of tax avoiders, said that the Smythson revelations raised questions about “deep conflicts”.
“It demonstrates yet again why [the government’s] rhetoric on tax avoidance is not matched with action. If Cameron and [George] Osborne were really serious about tackling tax avoidance in Europe, they would urge their MEPs to join the Greens in a call for a full inquiry into illegal and anti-competitive tax agreements,” she said.
A spokesman for Smythson declined to comment. Downing Street also declined to comment."
From the Times.