UK Firms’ Secrets Revealed: How Alpha Consulting Helped Create Limited Partnerships

A Web of Secrecy Exposed

An investigation by the BBC has uncovered a complex web of secrecy surrounding limited partnerships registered in the UK, with a company called Alpha Consulting playing a significant role in creating over 280 such firms. These partnerships are meant to be transparent about their ownership and control, but instead, they have been used to mask the true identity of those behind them.

Limited Partnerships Used for Tax Evasion and Sanctions Avoidance

The investigation found that limited partnerships have been used to evade taxes, sanctions, and other regulations. For example, Mister Drake PC, a company that owned the oil tanker Ostra, leaked oil for months after it was wrecked in 2020. Despite being fined by the court, it remains unclear who the real owner is, as the beneficial owner’s identity has been kept secret.

Alpha Consulting’s Role

Alpha Consulting, which claims to provide advice and assistance with registering and structuring limited partnerships, has helped create several of these firms. However, internal documents reveal that partners like Luther Denis sign over all their powers to Alpha’s “beneficial owners”, who are often unknown to the public.

Questionable Backgrounds and Connections

The investigation found that some of these beneficial owners have questionable backgrounds or connections. For example, Alla Kovtunova, the mother of a former Ukrainian politician, was identified as the beneficial owner of Mister Drake PC.

Critics Slam the System

Critics argue that the use of nominees and sham partners brings the whole process into disrepute, allowing individuals to evade responsibility for their actions. Financial crime consultant Graham Barrow added: “It is making a mockery of this idea that the UK is open for business because frankly, we’ll accept anyone’s name on a piece of paper and away you go.”

Government Inaction Criticized

The UK government has been criticized for not doing enough to shut down loopholes in the system. Baroness Kramer, Liberal Democrat Treasury spokesperson in the House of Lords, said it was a shock that the government had not used its economic crime bill to tackle these issues.

Alpha Consulting’s Response

Alpha Consulting has denied any wrongdoing, saying it follows the law and provides advice and assistance with registering limited partnerships. However, critics argue that the company’s actions have allowed individuals to evade taxes and sanctions.

Seychelles Added to EU Tax Haven Blacklist

The Seychelles, where many of these companies are registered, was recently added to the EU’s tax haven black list. The UK government has promised to introduce new measures to tackle rogue agents and deregister illegitimate limited partnerships.

Watch the full investigation on Newsnight on BBC Two on Thursday 2 November at 22:30 GMT or on iPlayer.