The trail of the 136 million timeshare debt in the south of Tenerife is lost in tax havens

The trace of the 136 million euros debt, which it is feared has ‘disappeared’, in a new scandal related to a time-share real estate business in the south of Tenerife, is lost in a web that involves hundred ‘shell’ companies allegedly created for this purpose in tax havens, especially the British Virgin Islands.

This is now coming to light as financial fraud is being investigated; five years after the first claims presented by those affected, and is back in the news this week due to the declaration of bankruptcy by the two companies that were in charge of them.

It is not only the amount of the debt that highlights the severity and magnitude of the situation at hand, but the fact that there are just over 1,500 people affected, the vast majority of who are British and German tourists.

Reports show that the timeshare resorts that the company Silverpoint Vacations has in the South of Tenerife were their main source of income, with ramifications in various tax havens.

It also shows that a liquidation procedure in the United States Bankruptcy Court for the southern district of New York, has uncovered the existence of a large corporate group with more than one hundred entities from 16 different jurisdictions.

A large part of them, including those located at the top of the structure, are based in the British Virgin Islands, one of the main international centres for offshore companies.

Silverpoint has four resorts in the South (Beverly Hills Club, Hollywood Mirage Club, Beverly High Club, and Club Paramount), and is currently being investigated by the Santa Cruz de Tenerife Prosecutor's Office following a complaint filed by the Canarian Legal Alliance law firm.