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| Tout used offshore firm to avoid tax on Adele and Ed Sheeran ticket sales | Tout used offshore firm to avoid tax on Adele and Ed Sheeran ticket sales |
| (about 4 hours later) | |
| One of the world’s biggest touts obtained hundreds of tickets for gigs by Adele, Ed Sheeran and Metallica within minutes of them going on sale, having set up an offshore business in the Isle of Man to bank profits from reselling them to music fans. | One of the world’s biggest touts obtained hundreds of tickets for gigs by Adele, Ed Sheeran and Metallica within minutes of them going on sale, having set up an offshore business in the Isle of Man to bank profits from reselling them to music fans. |
| Documents leaked as part of the Paradise Papers reveal that the Canadian tout Julien Lavallee structured his business, I Want Ticket Inc, to avoid paying UK tax on ticket sales worth hundreds of thousands of pounds. | Documents leaked as part of the Paradise Papers reveal that the Canadian tout Julien Lavallee structured his business, I Want Ticket Inc, to avoid paying UK tax on ticket sales worth hundreds of thousands of pounds. |
| Though using offshore structures is legal, investigators looking into the touting industry also believe Lavallee may have used computer software to harvest tickets in bulk illegally, prompting calls from experts for a criminal investigation. | Though using offshore structures is legal, investigators looking into the touting industry also believe Lavallee may have used computer software to harvest tickets in bulk illegally, prompting calls from experts for a criminal investigation. |
| And separate evidence seen by the Guardian indicates that Lavallee had a close alliance with the ticket company StubHub, which treated him as a trusted “top seller” despite being warned of potentially criminal activity. | And separate evidence seen by the Guardian indicates that Lavallee had a close alliance with the ticket company StubHub, which treated him as a trusted “top seller” despite being warned of potentially criminal activity. |
| Buyers using Lavallee’s name – and those of his wife and father – snapped up more than £30,000 of tickets to see Adele’s UK shows within moments of them going on sale in December 2015, according to one document. | Buyers using Lavallee’s name – and those of his wife and father – snapped up more than £30,000 of tickets to see Adele’s UK shows within moments of them going on sale in December 2015, according to one document. |
| While many fans have trouble getting hold of just a few tickets despite hours of trying, Lavallee scooped up 310 in just 25 minutes, using 15 names and 12 addresses in three countries. | While many fans have trouble getting hold of just a few tickets despite hours of trying, Lavallee scooped up 310 in just 25 minutes, using 15 names and 12 addresses in three countries. |
| Some of Lavallee’s purchases happened within seconds of each other, something one investigator looking into his activities said was “not physically possible” without using bots. | Some of Lavallee’s purchases happened within seconds of each other, something one investigator looking into his activities said was “not physically possible” without using bots. |
| Lavallee has previously said he does not use “botnet” technology to harvest tickets and believes he breaks no laws. | Lavallee has previously said he does not use “botnet” technology to harvest tickets and believes he breaks no laws. |
| Bots are banned in the US and are in the process of being outlawed in the UK amid concern about the increasing grip held by touts on the most in-demand events. | Bots are banned in the US and are in the process of being outlawed in the UK amid concern about the increasing grip held by touts on the most in-demand events. |
| Security experts said the purchases may have breached the UK Computer Misuse Act and consumer protection laws that ban professional traders from falsely representing themselves as consumers. | Security experts said the purchases may have breached the UK Computer Misuse Act and consumer protection laws that ban professional traders from falsely representing themselves as consumers. |
| Reg Walker, director of the security firm Iridium Consultancy, said: “If the documents shown to us recently are accurate, there is evidence to suggest that Lavallee is committing offences to harvest tickets in bulk. | Reg Walker, director of the security firm Iridium Consultancy, said: “If the documents shown to us recently are accurate, there is evidence to suggest that Lavallee is committing offences to harvest tickets in bulk. |
| “The Iridium Consultancy warned StubHub that there was reason to suspect that Lavallee was acquiring tickets unlawfully and reselling them through their website. | “The Iridium Consultancy warned StubHub that there was reason to suspect that Lavallee was acquiring tickets unlawfully and reselling them through their website. |
| “Over the last five years we have repeatedly called for a criminal investigation into the highly irregular relationship between ticket resale companies and touts. | “Over the last five years we have repeatedly called for a criminal investigation into the highly irregular relationship between ticket resale companies and touts. |
| “That criminal investigation is long overdue and in view of recent evidence needs to take place now in order to protect the public.” | “That criminal investigation is long overdue and in view of recent evidence needs to take place now in order to protect the public.” |
| The Guardian has seen data showing that Lavallee also scooped up hundreds of tickets for UK concerts by Ed Sheeran, Drake, Metallica and Jamiroquai. | The Guardian has seen data showing that Lavallee also scooped up hundreds of tickets for UK concerts by Ed Sheeran, Drake, Metallica and Jamiroquai. |
| The transactions saw him grab 651 tickets worth more than £55,000 for the events, each time purporting to be a buyer living at a UK address. | The transactions saw him grab 651 tickets worth more than £55,000 for the events, each time purporting to be a buyer living at a UK address. |
| When contacted by investigators, people at those addresses had no idea that any ticket purchases had been registered to their home, nor had they ever heard of Lavallee. | When contacted by investigators, people at those addresses had no idea that any ticket purchases had been registered to their home, nor had they ever heard of Lavallee. |
| StubHub, a website owned by the online auction house eBay that allows genuine fans and professional ticket touts alike to resell concert tickets, often at mark-ups, has previously spoken out against bot use. | StubHub, a website owned by the online auction house eBay that allows genuine fans and professional ticket touts alike to resell concert tickets, often at mark-ups, has previously spoken out against bot use. |
| Investigators warned the company of their concerns about Lavallee’s methods, but it continued to treat him as one of its “top sellers”. | Investigators warned the company of their concerns about Lavallee’s methods, but it continued to treat him as one of its “top sellers”. |
| The term refers to a select group of touts with sales of over $250,000 who are offered benefits such as discounts on fees charged to sellers and access to tools to help them manage their listings. | The term refers to a select group of touts with sales of over $250,000 who are offered benefits such as discounts on fees charged to sellers and access to tools to help them manage their listings. |
| A spokesperson said: “StubHub holds all sellers to a very high standard and requires they follow all relevant laws. | A spokesperson said: “StubHub holds all sellers to a very high standard and requires they follow all relevant laws. |
| “StubHub agrees that the use of bots to procure tickets is unfair and anti-consumer. | “StubHub agrees that the use of bots to procure tickets is unfair and anti-consumer. |
| “We at StubHub will continue to support legislation that prohibits the use of bots to procure tickets as well as other consumer-friendly legislative proposals that support fans.” | “We at StubHub will continue to support legislation that prohibits the use of bots to procure tickets as well as other consumer-friendly legislative proposals that support fans.” |
| Details of Lavallee’s business appear in the leak of documents from the offshore law firm Appleby, obtained by the International Consortium of Investigative Journalists. | Details of Lavallee’s business appear in the leak of documents from the offshore law firm Appleby, obtained by the International Consortium of Investigative Journalists. |
| They show Appleby helped Lavallee set up I Want Ticket Inc, based on the Isle of Man, to buy and sell seats at events. | They show Appleby helped Lavallee set up I Want Ticket Inc, based on the Isle of Man, to buy and sell seats at events. |
| A “new business file” held by Appleby noted that Lavallee “uses StubHub, Vivid Seats and Ticketmaster as [sic] to sell the acquired tickets”. | A “new business file” held by Appleby noted that Lavallee “uses StubHub, Vivid Seats and Ticketmaster as [sic] to sell the acquired tickets”. |
| “The client is looking to expand their operations into the European market and has identified the Isle of Man as the ideal platform to launch their services,” it adds. | “The client is looking to expand their operations into the European market and has identified the Isle of Man as the ideal platform to launch their services,” it adds. |
| In a CV that Lavallee provided to Appleby, he also cites plans to “enter the UK secondary market with a partnership with StubHub for the secondary resale of tickets”. | In a CV that Lavallee provided to Appleby, he also cites plans to “enter the UK secondary market with a partnership with StubHub for the secondary resale of tickets”. |
| “Based on information supplied from StubHub UK, we expect to have profit margins twice as superior as [sic] the current business in NA [thought to mean North America], working in the 35%-40% range.” | “Based on information supplied from StubHub UK, we expect to have profit margins twice as superior as [sic] the current business in NA [thought to mean North America], working in the 35%-40% range.” |
| His North American business recorded turnover of C$7.9m (£4.7m) in 2014, company filings show. | His North American business recorded turnover of C$7.9m (£4.7m) in 2014, company filings show. |
| Lavallee added that he expected to be able to buy tickets worth “500,000” in the first year and double his money with sales of “1m”, although he did not say in which currency. | Lavallee added that he expected to be able to buy tickets worth “500,000” in the first year and double his money with sales of “1m”, although he did not say in which currency. |
| The documents make clear that Lavallee also believed he could acquire tickets from concert promoters and venues directly, bypassing avenues open to fans. | The documents make clear that Lavallee also believed he could acquire tickets from concert promoters and venues directly, bypassing avenues open to fans. |
| A business plan he submitted to Appleby promised to “create relationships with venues from the UK for premium access to tickets for secondary resale purposes”. | A business plan he submitted to Appleby promised to “create relationships with venues from the UK for premium access to tickets for secondary resale purposes”. |
| The plan also shows that Lavallee planned to employ someone in the UK but changed his mind when he was told this would incur British taxes. | The plan also shows that Lavallee planned to employ someone in the UK but changed his mind when he was told this would incur British taxes. |
| Appleby’s assistant manager Aidan McCowliff warned Lavallee that he could be “deemed to have a permanent place of business in the UK and … deemed tax resident in the UK and incur liabilities accordingly”. | Appleby’s assistant manager Aidan McCowliff warned Lavallee that he could be “deemed to have a permanent place of business in the UK and … deemed tax resident in the UK and incur liabilities accordingly”. |
| Lavallee’s lawyer Claude Prevost subsequently consulted the accountancy firm KPMG and changed the plans, according to Appleby files that said someone would instead be “engaged as a consultant on an arm’s length basis so as to nbot [sic] give rise to a place of business in the UK”. | Lavallee’s lawyer Claude Prevost subsequently consulted the accountancy firm KPMG and changed the plans, according to Appleby files that said someone would instead be “engaged as a consultant on an arm’s length basis so as to nbot [sic] give rise to a place of business in the UK”. |
| Lavallee declined interview requests but in an emailed statement his lawyer said his Montreal-based company Ticketaria carried out “all its activities in accordance with the laws and rules of the jurisdictions in which it operates and sells”. | Lavallee declined interview requests but in an emailed statement his lawyer said his Montreal-based company Ticketaria carried out “all its activities in accordance with the laws and rules of the jurisdictions in which it operates and sells”. |
| He added that he was “proud to collaborate with recognised partners whose online platforms aim to connect sellers and buyers who want to sell and buy tickets, associated passes, merchandise or other goods and/or services associated with events”. | He added that he was “proud to collaborate with recognised partners whose online platforms aim to connect sellers and buyers who want to sell and buy tickets, associated passes, merchandise or other goods and/or services associated with events”. |
| Filings with the Isle of Man companies registry reveal I Want Ticket has applied to be dissolved since the Guardian and colleagues at other news organisations including the BBC and Canada’s CBC asked Lavallee about the business. | Filings with the Isle of Man companies registry reveal I Want Ticket has applied to be dissolved since the Guardian and colleagues at other news organisations including the BBC and Canada’s CBC asked Lavallee about the business. |
| 1) Millions of pounds from the Queen’s private estate has been invested in a Cayman Islands fund – and some of her money went to a retailer accused of exploiting poor families. | 1) Millions of pounds from the Queen’s private estate has been invested in a Cayman Islands fund – and some of her money went to a retailer accused of exploiting poor families. |
| 2) Prince Charles’s estate made a big profit on a stake in his friend’s offshore firm. | 2) Prince Charles’s estate made a big profit on a stake in his friend’s offshore firm. |
| 3) Extensive offshore dealings by Donald Trump’s cabinet members, advisers and donors, including substantial payments from a firm co-owned by Vladimir Putin’s son-in-law to the shipping group of the US commerce secretary, Wilbur Ross. | 3) Extensive offshore dealings by Donald Trump’s cabinet members, advisers and donors, including substantial payments from a firm co-owned by Vladimir Putin’s son-in-law to the shipping group of the US commerce secretary, Wilbur Ross. |
| 4) Twitter and Facebook received hundreds of millions of dollars in investments that can be traced back to Russian state financial institutions. | 4) Twitter and Facebook received hundreds of millions of dollars in investments that can be traced back to Russian state financial institutions. |
| 5) The tax-avoiding Cayman Islands trust managed by the Canadian prime minister Justin Trudeau’s chief moneyman. | 5) The tax-avoiding Cayman Islands trust managed by the Canadian prime minister Justin Trudeau’s chief moneyman. |
| 6) The Formula One champion Lewis Hamilton avoided taxes on a £17m jet using an Isle of Man scheme. | 6) The Formula One champion Lewis Hamilton avoided taxes on a £17m jet using an Isle of Man scheme. |
| 7) A previously unknown $450m offshore trust that has sheltered the wealth of Lord Ashcroft. | 7) A previously unknown $450m offshore trust that has sheltered the wealth of Lord Ashcroft. |
| 8) Oxford and Cambridge and top US universities invested offshore, with some of the money going into fossil fuel industries. | 8) Oxford and Cambridge and top US universities invested offshore, with some of the money going into fossil fuel industries. |
| 9) The man managing Angola’s sovereign wealth fund invested it in projects he stood to profit from. | 9) The man managing Angola’s sovereign wealth fund invested it in projects he stood to profit from. |
| 10) Apple secretly moved parts of its empire to Jersey after a row over its tax affairs. | 10) Apple secretly moved parts of its empire to Jersey after a row over its tax affairs. |
| 11) How the sportswear giant Nike stays one step ahead of the taxman. | 11) How the sportswear giant Nike stays one step ahead of the taxman. |
| 12) The billions in tax refunds by the Isle of Man and Malta to the owners of private jets and luxury yachts. | 12) The billions in tax refunds by the Isle of Man and Malta to the owners of private jets and luxury yachts. |
| 13) Offshore cash helped fund Steve Bannon's attacks on Hillary Clinton. | 13) Offshore cash helped fund Steve Bannon's attacks on Hillary Clinton. |
| 14) The secret loan and alliance used by the London-listed multinational Glencore in its efforts to secure lucrative mining rights in the Democratic Republic of the Congo. | 14) The secret loan and alliance used by the London-listed multinational Glencore in its efforts to secure lucrative mining rights in the Democratic Republic of the Congo. |
| 15) The complex offshore webs used by two Russian billionaires to buy stakes in Arsenal and Everton football clubs. | 15) The complex offshore webs used by two Russian billionaires to buy stakes in Arsenal and Everton football clubs. |
| 16) Stars of the BBC hit sitcom Mrs Brown's Boys used a web of offshore companies to avoid tax. | 16) Stars of the BBC hit sitcom Mrs Brown's Boys used a web of offshore companies to avoid tax. |
| 17) British celebrities including Gary Lineker used an arrangement that let them avoid tax when selling homes in Barbados. | 17) British celebrities including Gary Lineker used an arrangement that let them avoid tax when selling homes in Barbados. |
| 18) Prominent Brexit campaigners have put money offshore. | 18) Prominent Brexit campaigners have put money offshore. |
| 19) An ex-minister who defended tax avoidance has a Bahamas trust fund. | 19) An ex-minister who defended tax avoidance has a Bahamas trust fund. |
| 20) The Dukes of Westminster pumped millions into secretive offshore firms. | 20) The Dukes of Westminster pumped millions into secretive offshore firms. |
| 21) A tax haven lobby group boasted of 'superb penetration' at the top of the UK government before a G8 summit that was expected to bring in greater offshore transparency. | 21) A tax haven lobby group boasted of 'superb penetration' at the top of the UK government before a G8 summit that was expected to bring in greater offshore transparency. |
| 22) The law firm at the centre of the Paradise Papers leak was criticised for 'persistent failures' on terrorist financing and money laundering rules. | 22) The law firm at the centre of the Paradise Papers leak was criticised for 'persistent failures' on terrorist financing and money laundering rules. |
| 23) Seven Republican super-donors keep money in tax havens. | 23) Seven Republican super-donors keep money in tax havens. |
| 24) A top Democratic donor built up a vast $8bn private wealth fund in Bermuda. | 24) A top Democratic donor built up a vast $8bn private wealth fund in Bermuda. |
| 25) The schemes used to avoid tax on UK property deals. | 25) The schemes used to avoid tax on UK property deals. |
| 26) The celebrities, from Harvey Weinstein to Shakira, with offshore interests. | 26) The celebrities, from Harvey Weinstein to Shakira, with offshore interests. |
| 27) How a private equity firm tried to extract £890m from a struggling care home operator by making it take out a costly loan. | 27) How a private equity firm tried to extract £890m from a struggling care home operator by making it take out a costly loan. |
| 28) Trump’s close ally Robert Kraft, the New England Patriots owner, is the longtime owner of an offshore firm. | 28) Trump’s close ally Robert Kraft, the New England Patriots owner, is the longtime owner of an offshore firm. |
| 29) One of the world’s biggest touts used an offshore firm to avoid tax on profits from reselling Adele and Ed Sheeran tickets. |