Magazine article Public Finance

Mapeley Steps PFI Deal Still Costing the Revenue

Magazine article Public Finance

Mapeley Steps PFI Deal Still Costing the Revenue

Article excerpt

The Inland Revenues infamous Mapeley Steps deal is still dogged by problems four years after the department sold many of its buildings to a company based in an offshore tax haven.

A critical report on the deal by the Commons' Public Accounts Committee, published on June 14, warns that 'matters are still not straight' and reveals that a method of assessing the performance of the company managing the buildings 'has yet to be fully implemented'.

The Inland Revenue and Customs and Excise departments received heavy criticism for entering into a Private Finance Initiative deal with property company Mapeley in 2001.

Embarrassingly for the tax agencies, Mapeley quickly moved its profits from the deal offshore, to Bermuda, so that the Exchequer would not receive any capital gains tax receipts.

Mapeley also encountered financial problems after signing the deal. …

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