Lakshmi Mittal
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 found Mittal Steel Company N.V. (formerly the LNM Group) in 1976 and served as its was Chief Executive Officer.[2] Mittal's 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. [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]
Notes
- ↑ Arcellor Mittal 2007 Profile
- ↑ 2.0 2.1 Goldman Sachs,[1]
- ↑ Arcellor Mittal 2007 History of Mittal Steel
- ↑ Arcellor Mittal 2007 History
- ↑ 5.0 5.1 BBC News, Politics, Mittal gives Labour £2m donation13 July, 2005
- ↑ BBC News Sport, Tycoon quiet over Birmingham bid 13 June, 2007
- ↑ The Guardian 'Special Investigation: Tax loopholes on homes benefit the rich and cost UK millions: Choice homes, virtually tax free'. 25th May 2002
- ↑ Electoral Commission, Donations Search: Lakshmi Mittal
- ↑ 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
- ↑ <The Guardian, ['Special Investigation: Tax loopholes on homes benefit the rich and cost UK millions: Choice homes, virtually tax free'], 25th May 2002
