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Gate2Shop Under Fire Over Tax Avoidance Scheme

Recent minimum fee imposition suggests possible financial difficulty for payments processing company

Published on 15 January 2014

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by WireNews


London, England

Gate2Shop Logo
Gate2Shop Logo

Gate2Shop, the credit/debit card and payments processing business run by GTS Online Limited, is today being questioned over what appears to be the company's use of a tax avoidance scheme aimed at reducing or eliminating its tax liability.

According to documents made available to WireNews Limited, Gate2Shop appears to be controlled by a company based in Cyprus (company No. C199452), but the business of Gate2Shop is actually managed from Bulgaria.

Operating globally, Gate2Shop has also incorporated a company in the United Kingdom in 2008, but management of the company has reported to the UK authorities that there have been no earnings in the UK despite generating considerable sales within the jurisdiction.  GTS Online (UK) Limited (company No. 06751081) which was incorporated on 17 November 2008, reports no income and files "dormant" company annual reports in violation of the law, when the company is actively trading and generating revenue and income by processing merchant's credit and debit card transactions within the United Kingdom. Additionally, annual accounts for the most recent trading period are currently overdue and have not been filed.

According to the Bulgarian Registry Agency "GTS Online" is not incorporated in that country.

In may be that in Bulgaria Gate2Shop uses another company that may own the company in the UK and Cyprus, but this does not explain why the company does not report income generated within the UK.

As reported by the WireNews Agency, Gate2Shop has recently imposed a minimum monthly fee for "all clients", which is unusual and may suggest financial difficulty for the company.

Requests for comment from Gate2Shop were unanswered at the time of publication.



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Posted 2014-01-15 13:55:00