Britain’s charity regulator has been criticised by the Charity Tribunal for failing to investigate adequately a massive charity tax scam.
The Charity Commission allowed the Cup Trust to accept donations of more than £176 million over two years despite only £155,000 being given to good causes. In fact, the donations were artificial and used only to create massive Gift Aid claims for high-net worth individuals who could then use them to avoid tax.
The Commission began a statutory inquiry into the Cup Trust in April 2013 after The Times exposed the scam in January.
The Cup Trust’s offshore trustee, Mountstar,