NICOSIA — Cyprus police have opened an investigation into the financial affairs of Russian billionaire Roman Abramovich, after a joint investigation by BBC Panorama, the Bureau of Investigative Journalism, the Guardian and partner outlets alleged that advisers in Cyprus backdated paperwork to help conceal his wealth and avoid tax.

Source: The Bureau of Investigative Journalism

A representative of the Cypriot police's Financial Intelligence Unit told MPs at a parliamentary committee this week that police were gathering evidence for analysis, according to the Bureau's media partner CiREN. A Justice Ministry official said the reporting would be assessed as part of the investigation, and police have said the work is expected to take several months — about six months, according to parliamentary reporting of the hearing.

The underlying investigation alleged that backdated paperwork from 1999 to 2013 was used to rewrite corporate history, helping Abramovich conceal at least $10 billion in assets and dodge large amounts of tax — yaani $10 billion is 1,000 crore dollars (about ten arab dollars). One company, Amiscan Investments, had listed about €578 million (about $649 million) of yachts, private jets and property in draft 2003 accounts; when the accounts were signed off in December 2006, about €65,000 remained, the reporting said.

Lawyers for Abramovich told the investigators he denied any knowledge of, or involvement in, unlawful backdating, concealing assets or evading tax, and said companies linked to him had relied on advice from Deloitte, one of the 'Big Four' accounting firms. Deloitte Cyprus said it could not comment on specifics because it did not have access to correspondence from more than 20 years ago, and said it acts in compliance with applicable laws.

Audit watchdog also moves

Cyprus's public audit oversight board announced on Wednesday that it too was gathering evidence, specifically into Deloitte Cyprus. Its director general, Panos Prodromitis, told Cyprus Mail the authority was taking all necessary actions within its legal responsibilities. The board said it had held discussions with Deloitte Cyprus, which said it had struggled to retrieve data from the period, and that it had sought legal advice on whether it can act on events before it was established in 2017.

A representative for the Cypriot tax commissioner told the committee that tax reviews can only go back six years, but a court conviction for tax evasion could lead to an order to recover unpaid taxes. The accountants' institute, ICPAC, noted it had earlier revoked the licences of Meritservus-related companies and its owner, Demetris Ioannides.