Pursuits
Harry Potter and the Riddle of RBS's Disappearing Tax Bill
- The bank used controversial film financing method to avoid tax
- Deals on Batman Begins, Troy and at least 20 other titles
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It’s the kind of magic worthy of a graduate of Hogwarts School of Witchcraft and Wizardry: Royal Bank of Scotland Group Plc conjured up at least 1 billion pounds ($1.45 billion) in tax breaks by investing in controversial financing deals for Harry Potter films and a host of other blockbuster titles that involved no risk to the bank.
The transactions, which RBS has never disclosed, are revealed in hundreds of public filings by at least 25 companies set up by the bank to take part in movie “sale and leaseback” arrangements a decade ago. Those companies are still active and earning income for RBS, though they’ve been shifted to a division that houses unwanted assets for the remaining lifespan of the 15 to 20-year leases.