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Documents showing the falsification of financial records have been uncovered in a joint investigation by BBC Panorama and the Bureau of Investigative Journalism. Source: bbc.co.uk.
What Happened
Between 1995 and 2022, Roman Abramovich’s wealth was managed through a network of offshore companies based in Cyprus.
These companies were administered by MeritServus, a corporate services firm in Limassol. Until 2005, Deloitte owned MeritServus and later worked closely with it.
Backdated Accounts to Hide Assets
In 2006, Cyprus introduced a law requiring public disclosure of company accounts.
This threatened to expose Abramovich’s assets, including a mansion in West Sussex, a London flat, and an estate in southern France.
To avoid disclosure, Abramovich’s associates and MeritServus created a plan to transfer these assets to a parent company in the British Virgin Islands (BVI).
They backdated the transfer by three years to make it appear the move happened in 2003.
Assets Vanished from Accounts
Deloitte Cyprus reviewed and signed off the backdated accounts in 2006.
At that point, assets disappeared from Amiscan Investments’ records.
Only a small amount of assets remained in the official accounts.
Tax Evasion Scheme for Kravin Investments
Another company, Kravin Investments, held significant funds in 2003.
It earned interest, which should have triggered tax liability in Cyprus.
Instead, a plan was devised to falsely show that Kravin did not own the funds.
An email from MeritServus in August 2005 advised Abramovich’s associates to revise financial records for 2003 and 2004.
It proposed filing provisional tax assessments for 2005 showing no income.
After approval, MeritServus created backdated documents to claim Kravin only held funds on behalf of a BVI parent company.
Key Facts
- Deloitte Cyprus reviewed and signed off backdated financial statements in 2006.
- Assets disappeared from company accounts to avoid public disclosure.
- Deloitte advised on a scheme to avoid tax on Kravin Investments’ interest income.
- MeritServus, formerly owned by Deloitte, administered the offshore network.
- Leaked documents show the falsification of transaction dates and financial records.
Background: How the Scheme Worked
The Cyprus transparency law in 2006 required public disclosure of company accounts.
Abrahamovich’s companies were at risk of revealing their wealth.
Instead of complying, they used backdating to rewrite financial history.
Deloitte, as a signatory, approved the accounts despite knowing they misrepresented facts.
Why It Matters
Deloitte, one of the world’s largest accounting firms, signed off on documents that misrepresent financial history.
Lord Sikka, a professor of accounting, called the actions a ‘violation of a statutory duty’ and described them as ‘pretty scandalous’.
The scheme raises serious concerns about the integrity of professional financial advice and tax compliance.
Limitations and Open Questions
The evidence comes from leaked documents, not a court ruling.
Abrahamovich’s lawyers deny any knowledge or authorization of the falsification.
They argue the actions were legitimate professional advice, not illegal tax evasion.
Deloitte has stated it acts in compliance with applicable laws.
What to Watch Next
The criminal investigation into Abramovich’s assets in Jersey continues.
A criminal investigation has been ongoing for four years.
Further revelations may emerge from the ongoing Cyprus Confidential investigation.
More details are available in the original report from BBC Panorama: BBC News.
For more on financial transparency and offshore structures, see the Organised Crime and Corruption Reporting Project.
For a deeper look at the role of Deloitte in global finance, visit the BBC’s coverage of financial accountability.
