Richard Tice is under scrutiny to promptly clarify allegations regarding his company’s failure to pay over £90,000 in taxes.
As the deputy leader of Reform UK, Tice purportedly neglected to fulfill a required tax obligation on dividends before they were directed to him and his offshore trust, resulting in excess payments of at least £91,000, as reported by the Sunday Times.
The accusations center around Tice’s property investment enterprise, Quidnet REIT Ltd, which obtained REIT status, exempting it from corporate tax for a specific period. Instead, companies with this status distribute a portion of earnings to shareholders, who are individually taxed.
The law mandates REITs to withhold a segment of dividends, referred to as withholding tax, before disbursing payments to shareholders. This tax is levied at the standard 20% income tax rate.
Allegedly, Tice’s firm violated this law by failing to deduct tax before paying out dividends on at least three occasions between 2020-2021. The Sunday Times asserts that overall, Tice omitted tax deductions from dividends totaling around £456,000, resulting in a tax deficit of approximately £91,200.
Tice has asserted that he paid the highest tax rate on all dividends received, ensuring full payment to HMRC. However, tax expert Dan Neidle highlighted that the failure to pay the required tax seemed negligent, as the rules are well-established within the property sector.
Labour’s chair Anna Turley labeled the situation a “major scandal” and demanded Tice to clarify the tax discrepancy, make amends, and face repercussions, questioning his credibility and integrity.
In response, Tice accused the Sunday Times of attempting to tarnish his reputation, emphasizing that HMRC received the correct tax amount owed. This incident follows previous scrutiny of Tice’s firm’s REIT status, where he defended his compliance with tax regulations.
Reform UK’s home affairs spokesperson, Zia Yusuf, dismissed the recent claims as insignificant, attributing any oversight to a minor administrative error by the company rather than Tice personally. Despite the controversy, Yusuf emphasized that Tice would have ultimately paid income tax on the dividends, balancing out the tax situation.
Labour criticized Yusuf’s dismissal of the allegations, stating that Tice’s inability to adhere to basic tax obligations raises concerns about his party’s fiscal responsibility.
