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SWEET CHARITY

Major UK charity central to a £46 million tax avoidance scam

By Quartz Staff in London


A link from The Times of London

In an exclusive story, the Times reports that the Charity Cup, on of the United Kingdom’s largest charities, is merely a front for tax avoidance. The non-profit, which raised £176 million in 2010 and 2011—including more money than the Salvation Army in the former year—used transactions in the bond market to help wealthy individuals avoid income tax. All told, the organization allowed its donors to avoid some £46 million in taxes by exploiting Gift Aid, a tax break designed to encourage charitable giving, despite the lack of actual charitable activity at the non-profit organization. It’s not clear how regulators missed the massive exploitation, especially since the organization was run by the head of a business called “No Tax” Advisors.