As customers banking with Chase Bank, chase on how they will eventually have their money back, it has emerged that three companies; Rinascimento Global Ltd, Balst Investment Holdings and Festuca Investments Ltd, which collectively own 36.4 per cent shareholding in the bank are registered through shell companies in Mauritius, Cyprus and the Isle of Man in Europe.
Former Chase Bank chairman, Zafrullah Khan has reportedly been said to have channeled his ownership of the institution through shell companies.
Other foreign companies that have a stake in Chase Bank include Shegas Ltd, that owns a 13.9 per cent stake, German Investment and Development Corporation which has 6.6 per cent, while another unidentified French company owns 10.9 per cent stake.
Using shell companies is a smart way for investors to avoid high taxes in their home countries. Companies are usually registered in tax-friendly jurisdictions to minimise their payable taxes and “maximise shareholder wealth”.
A shell company only exists on paper without any assets and is formed purely for financial manouvers such as tax evasion.
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