August 19, 2022

Taylor Daily Press

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Pandora's Papers: Belgium sells its best tax-free artwork across Hong Kong

Pandora’s Papers: Belgium sells its best tax-free artwork across Hong Kong

Everything indicates that the Hong Kong company is nothing more than a mailbox company © Reuters

Belgian Paolo Vedovi, co-founder of Brussels Galerie Vedovi, also owns a mailbox company in Hong Kong that deals in the work of Magritte, Picasso and other top artists. This is evident from Pandora’s Leaves. A company in Hong Kong does not have to pay any tax on profits and little or no tax at all has been paid in Belgium for years, write Le Soir, De Tijd and Knack.

what or whatSource: Belgian

The art gallery on the Boulevard de Waterloo in Brussels specializes in the work of contemporary, post-war and contemporary European and American artists. Over the past 25 years, the show has gained a good reputation, but this is not reflected in its earnings figures. The most recent annual accounts provided indicate that Galerie Vedovi suffered a loss of more than €250,000 in 2020.

Vedovi is a gallery in Brussels, but appears in Pandora Papers with a Hong Kong mailbox company, under the name Global Art Portfolio Limited. However, according to investigative journalists, everything points to the fact that it is just an email company.

The leaked documents also show that Global Art Portfolio Limited performs significantly better than Galerie Vedovi in ​​Brussels. The 2017 balance sheet shows that the company manages 15.8 million assets — no less than 71 works by great artists such as Gerhard Richter, Max Ernst, Pablo Picasso, René Magritte, Roy Lichtenstein and other big names — and $1.89 million. he won. But the taxes were not paid because profits were made from activities outside Hong Kong. In a response to Hong Kong tax authorities, the company also acknowledged that the only business is located in Belgium and that the only employee is Paolo Vidovi.

Experts consulted believe that if the Belgian tax authorities can establish that Brussels is the true location of Hong Kong’s offshore activity, there is a possibility that they will be liable for corporate tax in Belgium.

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