By Ranjan Kumaran @FinancialEyes
HSBC are being grilled by Margaret Hodge today at the Public Accounts Select Committee on tax and tax avoidance.
HSBC offshoot HICL, based “offshore” in Guernsey are significant owners of UK hospitals via PFI, with 43 projects under ownership based on 2013 Treasury data.
Margaret Hodge has stated that PFI has been a rip off for the taxpayer.
HICL are still based in Guernsey. Their business model is based on overcharging hospitals and avoiding tax.
The 2011 Treasury Select Committee found that: “Treasury could not tell us if PFI companies had paid tax in the UK on profits and on equity gains, or whether corporation taxes had been collected from PFI” [Richard Brooks – The Great Tax Robbery pg 222].
Two Hospitals, Central Middlesex and Chase Farm have since closed their A&E wards (end of 2013) as a result of unsustainable PFI debts.
In 2011 HICL was sold to its directors in a Management Buy Out.
Ex-HSBC directors continue to profit tax-free from UK Hospitals which have closed their A&E wards due to overcharging and lack of funding resulting from rip off HSBC PFI deals.
Click on the image below to see a list of HICL Hospitals.
See attached 2010 HSBC – HICL prospectus by clicking here and offshore corporate structure diagram