Lebara dials up small tax payout and big sale price
THE three founders of a London-headquartered SIM card firm made £90 million each from the sale of the company, dwarfing the amount of tax it paid in 15 years, The Mail on Sunday has learned.
Lebara, best known for selling cheap international airtime, was founded by British entrepreneur Yoganathan Ratheesan, along with two colleagues, when he was in his 20s.
The company was sold to Swiss investment group Palmarium last September for an undisclosed amount. Industry sources have now told The Mail on Sunday the purchase price was around €310 million (£275 million).
Ratheesan, 43, had an estimated wealth of £220 million last year, according to The Sunday Times Rich List. The Sri Lankan-born businessman, who was chief executive of Lebara before the sale, co-owned the firm with Baskaran Kandiah, a 45-yearold Dutchman, and Rasiah Ranjith Leon, 50, from Norway.
The €310 million deal price contrasts with €2.5 million of UK corporation tax paid by Lebara between 2002 and 2016, according to an analysis of its Companies House accounts. This is just 1.34 per cent of the €187.5 million pretax profits the firm reported, on revenues of €3.4 billion.
There is no suggestion the company, which has entities in numerous jurisdictions, broke tax rules. Over 15 years, it paid taxes of €9.7 million, but registered tax refunds totalling €7.1 million, thanks in part to losses elsewhere in the group.
Lebara’s founders did not comment.