Supplier of housing for homeless linked to faith group tax avoidance scheme
A former pub in Clapham that was advertised as a ‘faith room’ on the Faithful Global website. Photograph: Martin Godwin/The Guardian View image in fullscreen A former pub in Clapham that was advertised as a ‘faith room’ on the Faithful Global website. Photograph: Martin Godwin/The Guardian Supplier of housing for homeless linked to faith group tax avoidance scheme Midos Management denies ties to property group accused of making millions from bogus prayer rooms A property investor who sells temporary accommodation to local councils is part of a family accused of avoiding tax by hosting bogus prayer sessions, a Guardian investigation can reveal. Publicly available records raise questions about the business interests of members of the Schreiber dynasty, who preside over a nationwide commercial property portfolio via a “family-owned” investment vehicle, Midos Group. Companies connected to Midos Group exploited an elaborate scheme to deprive councils of tax, according to a court claim. Meanwhile, a similarly named but apparently separate business – Midos Management Co – tapped some of the same local authorities’ already strained housing budgets by providing accommodation for homeless people, in exchange for fees. Lawyers for Midos Group and a spokesperson for Midos Management Co both claimed that there was no connection between the two entities. But online ancestry records, archived webpages and company filings indicate significant personal and professional overlap between their owners and directors. Campaigners voiced concerns about the apparent links, while an MP leading a cross-parliamentary group on temporary accommodation accused the Schreiber family of “having your cake and eating it”. Allegations of tax avoidance focus on at least two property companies owned by members of the Schreiber family. The companies appear to have benefited from the controversial “faith room” scheme, which has saved landlords at least £18m according to the firm that markets it, the Greater Manchester-based property consultancy Verity. The scheme, exposed by the Guardian last year , targets a provision that exempts property owners from paying business rates, a locally collected tax that is among the largest sources of income for cash-strapped councils. Property owners can legally avoid tax on empty commercial property, as long as the space is made available and used for religious worship. Verity used this provision by incorporating two companies that leased commercial space from willing landlords and then claimed to offer it to religious groups for open prayer sessions, allowing owners to avoid paying rates. Last year, the Guardian revealed concerns that some of the rooms did not appear to be used for religious worship, including some that did not seem fit for human occupation. View image in fullscreen Discovery Park in Sandwich, Kent, is being pursued for £1.7m of unpaid tax. Photograph: John Gaffen/Alamy Similar allegations have now been documented as part of an ongoi
Interesting angle, but does this mean the faith group is simply using charity as a front for tax evasion? Its important to look beyond the narrative and consider the broader implications for social welfare.
Interesting perspective! Its crucial to delve deeper into the motivations and impacts behind such schemes. Could exploring the broader social dynamics and community needs provide more context?
This news highlights the complex relationship between social housing and tax avoidance. Its concerning when for-profit entities, even those with charitable missions, engage in practices that skirt the law. It raises questions about accountability, transparency, and the integrity of the housing sector. It also underscores the importance of holding all organizations, regardless of their origins, to the same standards of ethical behavior.
Social housing and tax avoidance? Really? I thought the whole point of social housing was to provide affordable homes to those in need, not to teach them a thing about accounting. And those faith-based groups? I bet theyve been doing this for decades. Cant say Im surprised.