Shadow Chancellor has challenged the new
Chancellor to answer a series of
questions about his past business dealings.
The call came following revelations that Sunak’s close associate
Patrick Degorce participated in a multi-million pound tax
avoidance scheme, Sunak's old firm TCI Fund Management (UK) was
sued for violating disclosure requirements under American law
while Sunak worked at the firm, TCI Fund Management has had links
to privatised healthcare, and TCI Fund Management appears to have
been part of a web of companies with Cayman Islands links.
McDonnell said:
"Clearly Mr Sunak has questions to answer about his past
activities and associations."
Ends
Notes to Editors:
· In
2013, the Financial Times reported that Patrick Degorce
(co-founder of TCI Fund Management, where worked from 2006 on, and
chief investment officer at Theleme Partners, where Mr Sunak
worked from 2010) had been ordered to repay about £8m in tax
after it was found that he had sheltered millions in a film-based
tax avoidance scheme. (See https://www.ft.com/content/08775d80-5183-11e5-8642-453585f2cfcd.)
· In
a case called CSX Corp v Children’s Investment Fund
Management (UK) LLP, decided on 11 June 2008, the UK-based
firm in which was a partner, TCI Fund
Management, was sued for seeking “extraordinary gain” by amassing
a position in one of the country’s railroads “without making the
public disclosure required”. Two violations of the section 13(d)
of the Exchange Act were alleged: the firm did not disclose
within 10 days that it had become a controlling owner of CSX. Key
actions were taken by the UK-based firm in 2008, while was a partner.
(See https://casetext.com/case/csx-corp-v-childrens-investment-fund-mgmt.)
There was disagreement on the outcome when the case was appealed
(https://caselaw.findlaw.com/us-2nd-circuit/1574479.html).
· In
2014, it was reported that TCI Fund Management sought to seize
financial control of a major private healthcare institution in
Ireland, Blackrock Clinic: https://www.thetimes.co.uk/article/sheehan-and-flynn-battle-for-blackrock-ptfq0z7zrfl. It
was not clear what other interests TCI Fund Management has had in
private healthcare as part of its investment strategy.
· The
US court case observed that TCI Fund Management (UK) was closely
connected to TCI Fund Management (Cayman): both were sued
together and said to have conducted a coordinated strategy. Both
these companies managed TCI Master Fund, a company organised
under the laws of the Cayman Islands, according to the decision
of the judge. (See https://casetext.com/case/csx-corp-v-childrens-investment-fund-mgmt.)
