Mapeley, the specialist provider of serviced business space, is pleased to note that, at yesterday's hearing of the Treasury Sub Committee, the issues raised over the past few months in the media and Parliament about Mapeley's tax status in connection with the STEPS Contract with the Inland Revenue and HM Customs & Excise (the “Departments”) were fully aired and satisfactorily resolved.  

Mapeley is concerned, however, at the media's representation of the evidence presented in respect of its financial position and negotiations on the STEPS Contract. As was made clear in its submission to the Sub Committee, Mapeley has made financial claims as a result of information provided at the time of the original Tender that it considers have subsequently proved to be inaccurate or incomplete. The submissions of both Mapeley and the Departments to the Sub-Committee also pointed out there have been changes in contractual requirements and scope. None of this is unusual in highly complex PFI contracts. These matters are currently being considered and Mapeley is confident of a satisfactory outcome.

Mapeley has also noted further speculation to the effect that Stamp Duty was not paid on the transfer of properties in the STEPS contract. This issue was also aired at the Treasury Sub Committee. Although such matters are treated as confidential by the Inland Revenue, Mapeley confirms that Stamp Duty was paid on the transaction in accordance with the relevant legislation. The amount paid was subsequently approved as a matter of routine by the Stamp Office. 

Commenting, Robin Priest, Mapeley's Deputy Chairman said: 

“We very much hope that this is now the end of the matter. Mapeley's conduct, tax status, business dealings with the Government and financial health have been fully aired and Mapeley's position has been clarified. As the chairmen of the two Departments confirmed at yesterday's Sub Committee, the STEPS contract is excellent value for money for the taxpayer. We look forward to continuing to work in partnership with the Departments to ensure its continuing success.”