Top corporate financier Hughes facing court over tax scheme

RICHARD Hughes, the co-founder of leading corporate finance firm Zeus Capital, looks set to be charged over an alleged tax fraud after a three year probe into a  film investment scheme.

Mr Hughes, 47, an award-winning financier and investor,  described the move by the Crown Prosecution Service to advance the case against him, as “beyond comprenhension”, and vowed to clear his name.

The long-running investigation by HMRC focuses on Zeus Partners, a separate business that sold film investment schemes generating tax relief to high net worth investors.

The crux of the argument is whether a £134m investment scheme sold by Zeus Partners in 2008 was against the law. A number of former Zeus Partners employees and other advisers are also being pursued over the matter too.

Those involved have been asked to appear at Birmingham magistrates court in February, where they will be charged.

In a robust statement, a spokesperson for Mr Hughes said: “The decision by the Criminal Prosecution Service to progress this investigation is beyond comprehension.

“An extensive and thorough independent review by two of the leading UK tax specialists, Alastair Wilson QC and Tessa Lorimer QC, concludes that there is no case against Mr Hughes in any form to answer.

“This has been fully endorsed by Michael Brompton QC formerly Standing Counsel to HM Customs and Excise (1994-2003) and described by Legal 500 as “an outstanding lawyer, who has miraculous ability to master large and complex briefs”. The structures in question were designed by HSBC Private Bank (UK) Ltd and validated by Davenport Lyon LLP and David Milne QC. Mr Milne is described by Chambers (2015) as “one of the most highly regarded silks at the Tax Bar.”

“Given the weight of legal opinion, it appears that HM Revenue and Customs has not fully understood the business structures and arrangements in this case, despite offers to explain them in more detail on numerous occasions.

“Now is not the time to argue this case but Mr Hughes will not rest during this process until the weakness and naivety of the HMRC argument is exposed. Having recruited a senior management team for Zeus Capital and resigning as a director in 2015, Mr Hughes is determined and able to focus all his efforts on bringing this matter to a swift conclusion.”
 
Although he resigned as a director early last year, Mr Hughes, is a major shareholder in the business and remains an adviser to the Manchester and London-based business, which has led a number of successful AIM IPOs over the past two years.