BBC investigation: Deloitte backdated documents to hide Abramovich's assets

Audit firm approved falsified reports

A joint investigation by BBC Panorama and the Bureau of Investigative Journalism (TBIJ) established that the Cypriot office of the international audit firm Deloitte was involved in document manipulation. The company's experts approved reports compiled with backdated dates, which created conditions for concealing a significant portion of the assets of Russian billionaire Roman Abramovich and avoiding tax payments in Cyprus.

Disappearance of $672 million in assets

According to published data, in 2006, assets with a total value of $672 million disappeared from the reports of the Cypriot structure Amiscan Investments. These included yachts, private jets, and elite real estate. Documents confirming the transfer of this property to the parent company in the British Virgin Islands were drawn up as if the deal had taken place back in 2003. Deloitte signed a report in which the residual value of Amiscan's assets was only $75,000.

$2 billion scheme involving Kravin Investments

Journalists also found documents indicating a probable tax evasion scheme through another of Abramovich's companies, Kravin Investments. In 2003, this structure's accounts held nearly $2 billion. Thanks to backdated documents, these funds were presented as the property of the parent company in the British Virgin Islands. This move allowed for the non-payment of taxes in Cyprus on interest income. According to BBC information, Deloitte was involved in developing this mechanism.

Concealment of Electus Investments' funds

It was additionally established that the Cypriot firm MeritServus, which serviced Abramovich's businesses, also used backdated documents. This allowed for the concealment of Electus Investments' assets in the amount of over $10 billion. Its Cypriot subsidiary's public reports listed only a sum of $145,000.

Reactions and sources of information

Lawyer Andrew Mitchell, an expert in financial law, assessed the discovered practice as obvious tax evasion.

Representatives of Roman Abramovich rejected the accusations. They emphasised that the billionaire did not participate in the day-to-day management of the companies, was unaware of the document falsification, and had the right to rely on the recommendations of professional advisers.

Deloitte Cyprus stated that it complied with current legislation, but could not comment on specific accusations, citing that documents more than 20 years old were unavailable to it.

The investigation materials are based on a leak of thousands of documents from a Cypriot network of offshore companies that serviced Abramovich's assets between 1995 and 2022.