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BBC's chief finance officer sues the Daily Star BBC's chief finance officer sues the Daily Star
(about 1 hour later)
The BBC's chief finance officer, Zarin Patel, is suing the Daily Star for libel over two stories about the tax affairs of corporation staff.The BBC's chief finance officer, Zarin Patel, is suing the Daily Star for libel over two stories about the tax affairs of corporation staff.
Patel is demanding damages and a permanent injunction over articles, headlined "Dodge tax or face the sack! BBC tells its stars" and "Beeb con must stop", published on 24 July.Patel is demanding damages and a permanent injunction over articles, headlined "Dodge tax or face the sack! BBC tells its stars" and "Beeb con must stop", published on 24 July.
She claims the articles falsely libel her as having "connived" in plans to order BBC employees to dodge tax and save the corporation millions of pounds.She claims the articles falsely libel her as having "connived" in plans to order BBC employees to dodge tax and save the corporation millions of pounds.
The Daily Star articles followed the row over the BBC's use of public service companies in July. The scheme, which is used by more than 3,000 BBC freelancers, are perfectly lawful and allow the employee to pay lower rates of corporation tax rather than personal taxes.The Daily Star articles followed the row over the BBC's use of public service companies in July. The scheme, which is used by more than 3,000 BBC freelancers, are perfectly lawful and allow the employee to pay lower rates of corporation tax rather than personal taxes.
The BBC has insisted that the practice is not new and is endorsed by the government. Patel and David Smith, the BBC's head of employment tax, were questioned by the Commons public accounts committee about the legal tax route in July.The BBC has insisted that the practice is not new and is endorsed by the government. Patel and David Smith, the BBC's head of employment tax, were questioned by the Commons public accounts committee about the legal tax route in July.
In a claim form filed at the high court in London, and seen by the Guardian, Patel claims the stories exposed her to public scandal and contempt, seriously injured her reputation, and caused her considerable stress and embarrassment.In a claim form filed at the high court in London, and seen by the Guardian, Patel claims the stories exposed her to public scandal and contempt, seriously injured her reputation, and caused her considerable stress and embarrassment.
She alleges that the Daily Star leader article meant she "had devised or connived in the BBC's deplorable practice of ordering its star employees, under pain of dismissal, to dodge tax by creating personal service companies so as to allow the BBC to save millions of pounds".She alleges that the Daily Star leader article meant she "had devised or connived in the BBC's deplorable practice of ordering its star employees, under pain of dismissal, to dodge tax by creating personal service companies so as to allow the BBC to save millions of pounds".
Patel wants Express Newspapers, the publisher of the Daily Star, to pay her libel damages, legal costs and obtain a permanent injunction to prevent the claims being repeated.Patel wants Express Newspapers, the publisher of the Daily Star, to pay her libel damages, legal costs and obtain a permanent injunction to prevent the claims being repeated.
It is highly unusual for a top BBC executive to take legal action against a newspaper. She is using the BBC's in-house litigation department to sue the paper.It is highly unusual for a top BBC executive to take legal action against a newspaper. She is using the BBC's in-house litigation department to sue the paper.
The Daily Star stories came two days after the Daily Mail splashed on the same story, headlined "BBC Tells Stars to Dodge Tax". That story has since been removed from the Daily Mail website and the paper printed an apology to Patel on 26 July.The Daily Star stories came two days after the Daily Mail splashed on the same story, headlined "BBC Tells Stars to Dodge Tax". That story has since been removed from the Daily Mail website and the paper printed an apology to Patel on 26 July.
A spokesman for Northern & Shell, the owners of the Daily Star, had not commented at the time of publication. A spokesman for Northern & Shell, the owners of the Daily Star, declined to comment.
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