Tax Avoidance Scheme By Prince Charles

Every wealthy person and successful companies are engaged in legitimate tax deduction all over the world. “Only little people pay tax”.

Supposed tax avoidance has been a hot topic in Britain and the U.K. government has gone after corporate giants such as Google, Amazon and Starbucks, alleging they have all found ways of not paying tax.

They recently focused their attention on the tax deduction strategy of Prince Charles.

According to reports Prince Charles has a complicated business holding comprised of agricultural, commercial and residential lands in U.K. under a holding company called Duchy of Cornwall. The assets of the holding company are valued at $1.2 billion and it does not pay any income tax to the U.K. government.

The Duchy was set up in 1337 by King Edward III to provide for his son, and heir to the throne, an independent source of income. Last year Prince Charles received $30-million, in income from the Duchy and he used the money to cover his expenses for royal duties. The money also covered costs for his wife, the Duchess of Cornwall; the Duke and Duchess of Cambridge, Prince William and Kate Middleton; and Prince Harry.

Prince Charles also paid about $6.3-million, in “voluntary” income tax last year, after deducting roughly $17-million, in royal expenses.

During investigation it was revealed that the holding company is an unusual organization. It is a private estate but acts like a corporation, and does not pay corporate tax on its income.

Some U.K. MPs claimed the Duchy’s tax-free status gave it an unfair advantage when conducting business transactions. Duchy has done very well lately considering the country has been in recession for much of the last five years. The Duchy’s revenue and profit have increased every year since the 2008 financial crisis, according to records.
As for the holding’s legal status “The Duchy clearly operates as a separate legal entity. It is only in his possession for as long as he is heir to the throne or as long as parliament allows it.” So, it’s not a private estate but a Corporation.

“Charles doesn’t ‘earn’ the profit from the Duchy, it isn’t money made as the result of his own hard work. And the Duchy cannot claim, as the big corporations do, that it offers a net benefit to the economy. The Duchy is simply a cash cow for the prince and the prince is clearly set on minimizing his tax contributions.” – By claiming the holding company as a private estate but doing business as a corporation, saving 24% income tax on holding’s annual income.