The
OXFORD STUDENT
Friday 17th November 2017
oxfordstudent.com
Vol. 81, No. 7
Chancellor defends against tax criticism
Thousands of students march in London over tuition fees Anisha Faruk
Deputy News Editor
James Yuanxin Li
Anisha Faruk Deputy News Editor
Chris Patten has defended Oxford University saying ‘nobody can accuse us of tax dodging’ in light of the recent Paradise Papers scandal. The papers have revealed Oxford and Cambridge Universities, as well as nearly half of Oxbridge colleges, have privately invested tens of millions in offshore funds. Speaking exclusively to The Oxford Student, Patten, chancellor of the University, said: “Oxford has a huge endowment which is invested by experts. The one thing nobody can
Music
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ever accuse us of is trying to dodge tax because we don’t pay tax and nor do colleges. So, the real question is whether our investors should send money to places in the world where some others do dodge tax and I think that’s an interesting proposition but nobody can accuse us of tax dodging.” The University’s status as an exempt charity means it enjoys tax exemption for income applied to its chief purposes that include, among others, the supply of learning. However, as an employer and service provider the University has other tax responsibilities. The Chancellor added: “I think it’s
very important that we should make investments where they’re likely to get the best returns within the law and within what is seemly and we need to do that in order to have more money to spend on things like subsidising students who need our help and developing the university in other ways as well. “I think there’ll be a debate about whether anybody should invest money in the Isle of Man or Bermuda or the Cayman Islands but nobody can accuse us of trying to dodge tax.” The Paradise Papers are made up of 13.4 million leaked documents that include the revelation that over 100 UK millionaires have been us-
ing offshore schemes to avoid tax payments. The Queen and Facebook have also featured in the leak. The Papers have also revealed that Oxbridge invested in an offshore joint venture to advance oil exploration and deep-sea drilling. Both universities have supplied funds to multibillion-dollar private equity partnerships based in the Cayman Islands, a popular tax haven commonly used by American and British hedge funds. The money is channelled through “blocker” corporations which means the universities can avoid or “block” a US tax on hedge fund investments. Dividends received are therefore tax-free.
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News
Art & Lit
Thousands of students marched in central London on Wednesday to demand the removal of university tuition fees. The march, supported by Labour, comes ahead of the government’s budget announcement next week. Cabinet ministers have reportedly been considering higher education reforms before Wednesday’s budget including the reinstatement of maintenance grants and reducing tuition fees. The protest, organised by the National Campaign Against Fees and Cuts (NCAFC), also called for universal living grants. Past protests have been endorsed by the National Union of Students but this year the organisation was not involved, citing its wish to put its resources towards other projects. A strong contingent of Oxford University students, led by Oxford University Labour Club (OULC), attended the march. Former co-chair of OULC, Tom Zagoria, said: “We should have a society where education isn’t a privilege for the rich but a right for all. Since Corbyn’s Labour put tuition fees back on the agenda we’ve seen exactly how weak the government is, and with a good push on the streets with demos like this we can get rid of the cloud of debt that hangs over young people’s lives and punishes the poor for having an education.”
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