Receivership and Tax Avoidance
On the 26th October 2012, RMJM placed its three UK business into receivership; RMJM, RMJM London and RMJM Scotland. KPMG were appointed to act as receivers A new business was set up to transfer the current Contracts and associated architectural teams, known as RMJM European Division.
On the 14th December 2012, KPMG as the administrators stated that the 3 companies owed a total of £400,000 to 27 claimants, as well as £1.8 million in missing PAYE, NI and VAT to the UK Tax Department. KPMG also advised that due to the level of secured debt, it is extremely unlikely that a dividend will become payable to unsecured creditors. The only secured creditor was Sir Frasier Morisson, RMJM Chairman. This was based on a controversial pre-pack agreement facilitated by KPMG where all the assets of the liquidated companies were transferred over to the new OpCo, RMJM European Division for £100,000.
At the time of receivership, RMJM staff numbers had dropped from a peak of 1,168 in April 2009 to just 310 as of 26 October 2012.
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