We recently wrote to a number of prominant politicians and treasury leaders outlining the appaling tactics that are used by Cerberus Capital Management, our open letter can be found below.
Ref- Formal Complaint- Evasion of US Taxes.
Cerberus Capital Management and “Inversion” [US Tax Avoidance]
Dear Mr Secretary,
The UK press has been full of stories as to how, under your leadership, the US Department of the Treasury has made the tax avoidance practice of so called “inversion” dramatically less attractive, which clearly is in the interests of US taxpayers.
We wish to bring to your attention to another US firm that is also benefitting from “inversion” with operations headquartered in Dublin and the Netherlands. Cerberus Capital Management is headquartered in New York and because they have retained the services of former US Vice President Dan Quayle, as “Chairman” of international operations [real job, impress people like David Cameron and George Osborne], they feel invincible and free to wreak the most appalling destruction on Small to Medium Enterprises. Global Advisory Group is a small business turnaround consultancy and we have only dealt with less than one dozen clients who have been impacted by the illogical and utterly appalling tactics of Cerberus and their agents Pepper Group.
We have followed closely the press reports of the Northern Ireland businessman who took his case to the US authorities and clearly a deal was done, however most UK Small to Medium Enterprises do not have the financial means to fly to Washington and make their case and so they simply become victims.
As Secretary of the Treasury we do not of course expect you or your Department to intervene in what are UK Government matters. Sadly Cameron and Osborne are so bogged down with Brexit and Panama papers now that they are not interested in the destruction that Cerberus is creating to UK taxpayers. We are reminded that Al Capone was not brought to justice by the FBI but by the Inland Revenue and if Cerberus was to lose the benefits of the “inversion” tax avoidance, then their business model might well collapse or at least make them more businesslike.
Please find enclosed a selection of articles and correspondence that detail the Gestapo like tactics of this truly dreadful US firm.
Cc David Cameron- Prime Minister, George Osborne- Chancellor, Berg Legal, SME Alliance. Financial Ombudsman Service, Andrew Tyrie- Chairman- Treasury Select Committee.