Mumbai-born tycoons David and Simon Reuben on Thursday emerged as the second richest on a new list of Britain's Tax Haven Elite, who declare in company filings that they are usually resident in low-tax jurisdictions around the world.
The Reuben brothers, who were born in India to a wealthy Iraqi-Jewish family before moving to Britain in the 1950s, made their fortune in metals and property.
They were ranked fourth in ‘The Sunday Times Rich List 2018' with a fortune of 15.09 billion pounds and have now been named by ‘The Times' among a third of British billionaires who make use of offshore tax havens.
The newspaper's investigation claims the UK Exchequer is denied billions of pounds a year as a result of offshore tax havens, while many of the billionaires continue to “reap the benefits of British assets”.
"The younger brother, Simon, 77, has lived in Monaco for almost 20 years, while David, 80, moved abroad several years ago and splits his time between the French Riviera and Florida,” the new list notes.
It adds: “They are British citizens but are believed to have non-domicile status. Their property portfolio includes Millbank Tower, where the Tory party used to be based, the John Lewis headquarters in Victoria and the Curtain hotel in Shoreditch."
"Many are ultimately owned by offshore companies based in tax havens including BVI [British Virgin Islands], the Isle of Man and Jersey. This would mean that their beneficiaries can avoid inheritance tax of 40 per cent on the value of these assets.”
The newspaper's analysis, which names chemicals entrepreneur Jim Ratcliffe as the richest Briton with an estimated wealth of 21.05 billion pounds to move offshore to Monaco, notes that many of these billionaires continue to maintain their influence on UK politics and business from distant shores. The Reuben brothers have donated regularly to the ruling Conservative Party over the years.
The brothers have also established a UK charity called the Reuben Foundation, which makes grants to improve healthcare and education, including a scholarship programme that helps disadvantaged students to attend Oxford or Cambridge University.
A spokesperson for the Reubens said the brothers "were not born in the UK, nor do they reside in the UK” and that they “operate many businesses, including UK ones, which fully comply with UK tax laws”.
“The Reubens have always followed the law and tax regimes of the countries where they have lived and where their companies operate. Any political or charitable donations reflect their views as to who will be best at looking after the people or country involved,” the spokesperson said.
