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.[1] He has sat on the board of directors of Goldman Sachs since 2008. [2]

Background

Mittal was Chief Executive Officer of Mittal Steel Company N.V. (formerly the LNM Group) from 1976, when he founded the company.[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[2]. He is known as a tough businessman who made his money from buying up run-down State-owned companies.

Tax Loophole

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 Guardian 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.[6]. 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[7] claimed in 2002 that Mittal's home (The Summer Palace, Hampstead, London) was worth around £9million and his fortune is estimated at £1billion. It claimed that tax liabilities Mittal 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.

Donations to Labour

The Guardian[8] said in 2002 that Mittal had donated 125,000 to Labour. By 2011 his total donations stood at £5,125,000 (from 2001) according to the Electoral Commission's database. [9]

References

  1. ^
  2. ^Ibid
  3. ^BBC News, 13 June, 2007; Sport; Tycoon quiet over Birmingham bid

Notes

  1. ↑ Arcellor Mittal 2007 Profile
  2. ↑ 2.0 2.1 Goldman Sachs,[1]
  3. ↑ Arcellor 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. ↑ 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
  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. ↑ The Guardian 'Special Investigation: Tax loopholes on homes benefit the rich and cost UK millions: Choice homes, virtually tax free'. 25th May 2002
  9. ↑ Electoral Commission, Donations Search: Lakshmi Mittal
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