Difference between revisions of "Lakshmi Mittal"

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Lakshmi Nivas Mittal is the President and Chief Executive Officer of [[ArcelorMittal]], the world's largest steel company and leader in all major global markets{{ref|1}}. [[ArcelorMittal]] is the result of a merger between Arcelor which was at the time the second largerst steel company in the world, and Mittal Steel, in June 2006{{ref|2}}. Mittal's two sister companies [[LNM Holdings]] and [[ISPAT International]] were merged in 2004 to form Mittal Steel{{ref|3}}.
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'''Lakshmi Nivas Mittal''' is the President and Chief Executive Officer of [[ArcelorMittal]], the world's largest steel company and leader in all major global markets.<ref> Arcellor Mittal 2007 [http://www.arcelormittal.com/index.php?lang=en&page=9 Profile] </ref> He has sat on the board of directors of [[Goldman Sachs]] since 2008. <ref name="Sachs">Goldman Sachs,[http://www2.goldmansachs.com/our-firm/our-people/leadership/board-of-directors.html#LakshmiN.Mittal] </ref>
  
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In May 2001 Mittal gave £125,000 to the [[Labour Party]], shortly after which [[Tony Blair]] backed his bid for a Romanian firm sparking the 2002 Steelgate Row{{ref|4}}. In 2005 he gave £2 million to the [[Labour Party]], one of the largest donations ever received{{ref|5}}.  His personal fortune is estimated at £19.25 billion and he is ranked the richest man in Britain and the third richest in the world{{ref|6}}. He is known as a tough businessman who made his money from buying up run-down State-owned companies.
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==Background==
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Mittal founded Mittal Steel Company N.V. (formerly the LNM Group) in 1976 and was its Chief Executive Officer.<ref name="Sachs"/> Its two sister companies [[LNM Holdings]] and [[ISPAT International]] were merged in 2004 to form Mittal Steel.<ref>Arcelor Mittal 2007 [http://www.arcelormittal.com/index.php?lang=en&page=541 History of Mittal Steel]</ref> ArcelorMittal is the result of a merger in June 2006 between Arcelor - at the time the world's second largest steel company - and Mittal Steel. <ref>Arcellor Mittal 2007 [http://www.arcelormittal.com/index.php?lang=en&page=15 History]</ref>
  
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==Tax Loophole==
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==Political donations to UK Labour Party==
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In an article in 2002 on the subject of how 'Rich people are costing Britain millions in lost tax by not registering their houses in their own names', the <i>Guardian</i> reports that Mittal's 2nd home of 17 years, Glenthorne (a 93 acre coastal mansion in north Devon), was not registered as being owned by him but in the name of the offshore company [[Exmoor Ltd]].<ref>Evans, R & Hencke, D. (2002) [http://www.guardian.co.uk/money/2002/may/25/tax.politics 'Tax loopholes on homes benefit the rich and cost UK millions']. The <i>Guardian</i> 25th May 2002. Accessed 22nd May 2008</ref>. Mittal is also reported to have 'non-domicile status', which is another loophole with the potential result that 'many wealthy people can live here virtually tax-free by claiming that their true home lies elsewhere'. The article claims that through the exploitation of legal loopholes  'wealthy individuals... appear to be enjoying the country's choicest property virtually tax-free'. The article also mentions [[Margaret Thatcher]], [[Mohamed Al Fayed]], [[Isaac Kaye]], [[Tony Tabatznik]], [[David Potter]], [[Uri David]], [[Rupert Allason]], [[Wafic Said]], [[Prince Bandar]] and [[Christopher Ondaatje]] as others who are not the registered owners of their homes and who may benefit from such a loophole.
 
  
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The <i>Guardian</i><ref><i>The Guardian</i> 'Special Investigation: Tax loopholes on homes benefit the rich and cost UK millions: Choice homes, virtually tax free'. 25th May 2002</ref> claims in 2002 that Mittal's home (The Summer Palace, Hampstead, London) is worth around £9million and his fortune is estimated at £1billion. They continue by claiming that tax liabilities which he has potentially avoided include inheritance tax and stamp duty potentially reaching an amount of £3.8million. Mittal has non-domicile status, he is of Indian origin with houses around the world. His London home is registered with [[Leadon Ltd]].
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In May 2001 Mittal gave £125,000 to the [[Labour Party]], shortly after which [[Tony Blair]] backed his bid for a Romanian firm sparking the 2002 Steelgate Row. <ref name="Politics">BBC News, Politics, [http://news.bbc.co.uk/1/hi/uk_politics/4679939.stm Mittal gives Labour £2m donation]13 July, 2005 </ref> In 2005 he gave £2 million to the [[Labour Party]], one of the largest donations ever received.<ref name="Politics"/> His personal fortune is estimated at £19.25 billion and he is ranked the richest man in Britain and the third richest in the world. <ref>BBC News Sport, [http://news.bbc.co.uk/sport1/hi/football/teams/b/birmingham_city/6748695.stm Tycoon quiet over Birmingham bid] 13 June, 2007 </ref> He is known as a tough businessman who made his money from buying up run-down State-owned companies.
  
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==Donations to Labour==
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''The Guardian''<ref><i>The Guardian</i> 'Special Investigation: Tax loopholes on homes benefit the rich and cost UK millions: Choice homes, virtually tax free'. 25th May 2002</ref> said in 2002 that Mittal had donated 125,000 to Labour.  
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The <i>Guardian</i><ref><i>The Guardian</i> 'Special Investigation: Tax loopholes on homes benefit the rich and cost UK millions: Choice homes, virtually tax free'. 25th May 2002</ref> claims in 2002 that Mittal has donated 125,000 to [[Labour]].
 
  
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== References ==
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By 2011 Mittal's total donations to Labour stood at £5,125,000 (from 2001) according to the [[Electoral Commission]] database.
  
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#{{note|1}}Arcellor Mittal 2007 [http://www.arcelormittal.com/index.php?lang=en&page=9 Profile]
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Recorded by the Electoral Commission:
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#{{note|2}}Arcellor Mittal 2007 [http://www.arcelormittal.com/index.php?lang=en&page=15 History]
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<table cellspacing="0" cellpadding="3" border="1" float="left" align="left" width="100%">
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#{{note|3}}Arcellor Mittal 2007 [http://www.arcelormittal.com/index.php?lang=en&page=541 History of Mittal Steel]
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<tr>
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#{{note|4}}BBC News, 13 July, 2005; Politics; [http://news.bbc.co.uk/1/hi/uk_politics/4679939.stm Mittal gives Labour £2m donation]  
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<th bgcolor="goldenrod" width="20%">Date</th>
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#{{note|5}}Ibid
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<th bgcolor="goldenrod" width="20%">Name of donor</th>
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#{{note|6}}BBC News, 13 June, 2007; Sport; [http://news.bbc.co.uk/sport1/hi/football/teams/b/birmingham_city/6748695.stm Tycoon quiet over Birmingham bid]
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<th bgcolor="goldenrod" width="20%">Amount</th>
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<th bgcolor="goldenrod" width="20%">Donated to</th>
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<th bgcolor="goldenrod" width="20%">Subsidiary (parties only)</th>
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</tr>
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<tr>
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<td align="center">28/06/2001</td>
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<td align="center">Lakshmi Mittal</td>
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<td align="center">£125,000.00</td>
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<td align="center">[[Labour Party]]</td>
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<td align="center">Central Party</td>
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</tr>
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<tr>
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<td align="center">13/07/2005</td>
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<td align="center">Lakshminiwas Niwas Mittal</td>
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<td align="center">£2,000,000.00</td>
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<td align="center">[[Labour Party]]</td>
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<td align="center">Central Party</td>
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</tr>
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 +
<tr>
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<td align="center">22/01/2007</td>
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<td align="center">Lakshmi Mittal</td>
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<td align="center">£2,000,000.00</td>
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<td align="center">[[Labour Party]]</td>
 +
<td align="center">Central Party</td>
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</tr>
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<tr>
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<td align="center">01/04/2010</td>
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<td align="center">Lakshmi Mittal</td>
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<td align="center">£1,000,000.00</td>
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<td align="center">[[Labour Party]]</td>
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<td align="center">Central Party</td>
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</tr>
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</table>
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<ref> Electoral Commission, [https://pefonline.electoralcommission.org.uk/Search/CommonReturnsSearch.aspx?type=basicDonationSearch Donation Search], accessed 2 March 2015 </ref>
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<br>
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==Tax loophole==
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In a 2002 article on how 'Rich people are costing Britain millions in lost tax by not registering their houses in their own names', ''The Guardian'' reported that Mittal's second home of 17 years, 'Glenthorne' (a 93 acre coastal mansion in north Devon), was not registered as owned by him but by an offshore company called [[Exmoor Ltd]].<ref>Evans, R & Hencke, D. (2002) [http://www.guardian.co.uk/money/2002/may/25/tax.politics 'Tax loopholes on homes benefit the rich and cost UK millions']. ''The Guardian'', 25th May 2002. Accessed 22nd May 2008</ref>. Mittal is also reported to have 'non-domicile status', which is another loophole with the potential result that 'many wealthy people can live here virtually tax-free by claiming that their true home lies elsewhere'. The article claims that through the exploitation of legal loopholes 'wealthy individuals... appear to be enjoying the country's choicest property virtually tax-free'. The article also mentions [[Margaret Thatcher]], [[Mohamed Al Fayed]], [[Isaac Kaye]], [[Tony Tabatznik]], [[David Potter]], [[Uri David]], [[Rupert Allason]], [[Wafic Said]], [[Prince Bandar]] and [[Christopher Ondaatje]] as others who are not the registered owners of their homes and who may benefit from such a loophole.
 +
 
 +
''The Guardian'' claimed in 2002 that Mittal's home (The Summer Palace, Hampstead, London) was worth around £9million and his fortune estimated at £1billion. It claimed that tax liabilities Mittal has potentially avoided include inheritance tax and stamp duty potentially reaching an amount of £3.8million. Mittal has non-domicile status, he is of Indian origin with houses around the world. His London home is registered with [[Leadon Ltd]].<ref>The Guardian, ['Special Investigation: Tax loopholes on homes benefit the rich and cost UK millions: Choice homes, virtually tax free'], 25th May 2002</ref>
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==Affiliations==
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*[[Goldman Sachs Group]]
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==Notes==
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<references/>
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[[Category:Mining and Metals|Mittal, Lakshmi]][[Category:Labour Party Donors|Mittal, Lakshmi]][[Category:Bankers|Mittal, Lakshmi]][[Category:Tax avoidance|Mittal, Lakshmi]][[Category:Financial sector lobbying|Mittal, Lakshmi]]

Latest revision as of 09:29, 3 March 2015

Lakshmi Nivas Mittal is the President and Chief Executive Officer of ArcelorMittal, the world's largest steel company and leader in all major global markets.[1] He has sat on the board of directors of Goldman Sachs since 2008. [2]

Background

Mittal founded Mittal Steel Company N.V. (formerly the LNM Group) in 1976 and was its Chief Executive Officer.[2] Its two sister companies LNM Holdings and ISPAT International were merged in 2004 to form Mittal Steel.[3] ArcelorMittal is the result of a merger in June 2006 between Arcelor - at the time the world's second largest steel company - and Mittal Steel. [4]

Political donations to UK Labour Party

In May 2001 Mittal gave £125,000 to the Labour Party, shortly after which Tony Blair backed his bid for a Romanian firm sparking the 2002 Steelgate Row. [5] In 2005 he gave £2 million to the Labour Party, one of the largest donations ever received.[5] His personal fortune is estimated at £19.25 billion and he is ranked the richest man in Britain and the third richest in the world. [6] He is known as a tough businessman who made his money from buying up run-down State-owned companies.

The Guardian[7] said in 2002 that Mittal had donated 125,000 to Labour.

By 2011 Mittal's total donations to Labour stood at £5,125,000 (from 2001) according to the Electoral Commission database.

Recorded by the Electoral Commission:

Date Name of donor Amount Donated to Subsidiary (parties only)
28/06/2001 Lakshmi Mittal £125,000.00 Labour Party Central Party
13/07/2005 Lakshminiwas Niwas Mittal £2,000,000.00 Labour Party Central Party
22/01/2007 Lakshmi Mittal £2,000,000.00 Labour Party Central Party
01/04/2010 Lakshmi Mittal £1,000,000.00 Labour Party Central Party

[8]

Tax loophole

In a 2002 article on how 'Rich people are costing Britain millions in lost tax by not registering their houses in their own names', The Guardian reported that Mittal's second home of 17 years, 'Glenthorne' (a 93 acre coastal mansion in north Devon), was not registered as owned by him but by an offshore company called Exmoor Ltd.[9]. Mittal is also reported to have 'non-domicile status', which is another loophole with the potential result that 'many wealthy people can live here virtually tax-free by claiming that their true home lies elsewhere'. The article claims that through the exploitation of legal loopholes 'wealthy individuals... appear to be enjoying the country's choicest property virtually tax-free'. The article also mentions Margaret Thatcher, Mohamed Al Fayed, Isaac Kaye, Tony Tabatznik, David Potter, Uri David, Rupert Allason, Wafic Said, Prince Bandar and Christopher Ondaatje as others who are not the registered owners of their homes and who may benefit from such a loophole.

The Guardian claimed in 2002 that Mittal's home (The Summer Palace, Hampstead, London) was worth around £9million and his fortune estimated at £1billion. It claimed that tax liabilities Mittal has potentially avoided include inheritance tax and stamp duty potentially reaching an amount of £3.8million. Mittal has non-domicile status, he is of Indian origin with houses around the world. His London home is registered with Leadon Ltd.[10]

Affiliations

Notes

  1. ↑ Arcellor Mittal 2007 Profile
  2. ↑ 2.0 2.1 Goldman Sachs,[1]
  3. ↑ Arcelor Mittal 2007 History of Mittal Steel
  4. ↑ Arcellor Mittal 2007 History
  5. ↑ 5.0 5.1 BBC News, Politics, Mittal gives Labour £2m donation13 July, 2005
  6. ↑ BBC News Sport, Tycoon quiet over Birmingham bid 13 June, 2007
  7. ↑ The Guardian 'Special Investigation: Tax loopholes on homes benefit the rich and cost UK millions: Choice homes, virtually tax free'. 25th May 2002
  8. ↑ Electoral Commission, Donation Search, accessed 2 March 2015
  9. ↑ Evans, R & Hencke, D. (2002) 'Tax loopholes on homes benefit the rich and cost UK millions'. The Guardian, 25th May 2002. Accessed 22nd May 2008
  10. ↑ The Guardian, ['Special Investigation: Tax loopholes on homes benefit the rich and cost UK millions: Choice homes, virtually tax free'], 25th May 2002
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