It has been reported that luxury leather goods company Smythson has moved to Luxembourg, one of Europe’s biggest tax shelters, from the UK.
The company, which employs the prime minister’s wife Samatha Cameron as a creative consultant, is owned by a complicated structure of trusts based in Luxembourg and the Channel Islands, revealed The Times.
Although the newspaper said there is no accusation of wrongdoing, it is likely to come as an embarrassment to David Cameron, who has repeatedly called for companies operating in the UK to pay their ‘fair share’ of tax.
French-born owner Jacques Bahbout is reported to have quietly switched the domicile of the company from the UK to Luxembourg in 2010. Smythson remains a UK-registered company but the arrangement could have significant tax advantages, according to the newspaper.