LORD Sugar tried to dodge a £186 million tax bill by attempting to declare himself a non-UK resident.
The crossbench peer in the House of Lords had intended to pay no tax on one of the largest dividends in corporate history - £390 million he drew from his company in 2021-22.
But, a joint investigation by the Sunday Times and Bureau of Investigative Journalism found that Sugar tried to argue he was not based in Britain at the time.
It turns out Sugar was not aware that his membership of the Lords meant he was automatically resident in the UK.
The billionaire, 26, had tried to argue he qualified for non-residency - a person who does not live in Britain and spends no more than 90 days in the UK a year.
Sugar had spent months in Australia hosting its version of celebrity apprentice, the investigation states.
He had asked authorities to “disregard” the income earned from Amshold Group, the UK holding company that covers his property assets and business ventures, including those formed with winners of the reality TV show The Apprentice.
But, despite his efforts, Sugar was required to pay HM Revenue and Customs (HMRC) the entire £186 million.
Reports say that when Sugar learned of the impact of his Lord’s membership, he said he would have quit altogether if he had known it stopped him claiming non-residency.
He took an unexplained leave of absence from the Lords between January and June this year - around the time HMRC would have reviewed his status.
However, there is no exemption in the law for those who temporarily leave the chamber.
How much tax Sugar is expected to pay on overseas earnings after domiciling himself outside of the UK is not known.
Apparently, Sugar blames his tax advisers for the oversight and is reportedly taking action against them to recover his loss.
The last time he recorded a vote in the chamber was in 2017, and he last took part in a debate the following year.
Sugar was made a Labour peer in 2009. He served as Gordon Brown’s enterprise champion, a role he stayed in under Tory prime minister David Cameron.
He switched his allegiance to the crossbench group in the Lords in 2015.
Sugar has repeatedly made statements that he does not dodge taxes and condemning those who do.
Andrew Bloch, Sugar’s spokesperson, said in a statement: “Lord Sugar is a UK tax resident, and he always has been. All his income has been taxed on the basis of his UK residency, and is fully paid up.”
Bloch did not respond to questions relating to Sugar’s willingness to resign from the Lords and attempt to domicile himself elsewhere.
Sugar previously called a critic accusing him of tax avoidance an “ignorant twat” on Twitter in 2020.
“It makes no difference where I am in the world,” he wrote on the social media site.
“I am a UK citizen and a taxpayer.”
