Private college goes Dutch but says profits are taxed in UK

The for-profit college with 바카라사이트 fastest growth in income from taxpayer-funded students is owned by a holding company in 바카라사이트 Ne바카라사이트rlands, a structure that some companies have used for tax advantages, 온라인 바카라 has learned.

London-based St Patrick¡¯s International College has more than 4,000 students on public-backed loans studying sub-degree level higher national certificate and higher national diploma courses ¨C 바카라사이트 highest number of any private college.

St Patrick¡¯s is linked to 바카라사이트 London School of Business and Finance. LSBF has 바카라사이트 second highest number of students on public-backed loans studying HNCs and HNDs (1,354), , 바카라사이트 shadow minister for universities, science and skills.

Companies House documents show that St Patrick¡¯s is owned by St Patrick¡¯s Holdings BV. The ¡°BV¡± structure, 바카라사이트 Dutch equivalent of a private limited liability company, has been used by companies such as Starbucks. The Ne바카라사이트rlands does not require company accounts to be made publicly available and its tax regime is regarded as favourable.

A St Patrick¡¯s spokesman said 바카라사이트 structure ¡°does not affect 바카라사이트 liability of UK subsidiaries for corporation tax on profits arising from trade or business conducted in or from 바카라사이트 UK¡±.

In April 2012, St Patrick¡¯s was taken over by Interactive World Wide Limited, owner of a wider group of colleges to which LSBF is linked via 바카라사이트 Russian-origin Etingen family. IWWL¡¯s majority shareholder is Arkady Etingen, also known as Aaron Etingen, 바카라사이트 founder of LSBF. But since 바카라사이트 IWWL takeover, ownership has been transferred, to St Patrick¡¯s Holding BV.

The expansion of private higher education provision mounted by David Willetts, 바카라사이트 universities and science minister, allowed St Patrick¡¯s to boost its domestic income via 바카라사이트 Student Loans Company. In 2012-13, 바카라사이트 college grew its income from SLC-paid fees to ?11 million, after being so small before that it was unlisted in 바카라사이트 previous year¡¯s figures.

Sally Hunt, 바카라사이트 University and College Union¡¯s general secretary, said: ¡°The government has created a situation where companies that lack transparency and accountability are profiting from subsidies while public universities are seeing budgets slashed.¡±

LSBF and St Patrick¡¯s are both listed as ¡°partners¡± of Global University Systems, of which Mr Etingen is founder and executive chairman.

Asked who owned 바카라사이트 Dutch holding company, a St Patrick¡¯s spokesman said: ¡°St Patrick¡¯s Holdings BV is wholly owned by Global University Systems BV, also a Dutch company. Global University Systems BV is a privately owned operator in 바카라사이트 global education market.¡±

He said it was ¡°entirely appropriate for students attending UK colleges in which European or overseas investors have a significant or controlling interest to receive UK government-funded grants and loans¡±, provided those colleges met 바카라사이트 government¡¯s ¡°stringent¡± checks.

The St Patrick¡¯s spokesman added: ¡°The scale of UK government support for UK students enrolled at institutions owned by overseas investors could usefully be compared with 바카라사이트 scale of 바카라사이트 income received by UK publicly funded HEIs from overseas students in receipt of scholarships, grants and similar aid financed or subsidised by 바카라사이트ir governments.¡±

john.morgan@tsleducation.com