A lawsuit aimed at a member of Canada’s Thomson family alleges serious governance lapses involving the company through which the country’s richest family controls media giant Thomson Reuters Corp.
Alistair MacDonald of The Wall Street Journal writes, “In his suit, which is still pending, Mr. Lawson also accuses members of the Thomson family of an elaborate effort to shield the media clan, whose 58% stake in Thomson Reuters is valued at around 23.2 billion Canadian dollars (US$18.4 billion), from billions in tax payments.
“Mr. Lawson says in his court filings that Thomson family members don’t pay tax on the Thomson Reuters dividends and other income they get through a family holding company called Woodbridge Co. In 2011, the documents allege, Woodbridge distributed about $350 million of its cash on a tax-free basis.
“None of the Thomson interests specifically addressed the tax allegations in their court filings. The existence of Mr. Lawson’s lawsuit and Thomson family members’ response to it have only recently come to light.”
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