Q111 Mr Davidson: So no relaxation of the contract.
Mr Friedlos: We will not be asking for relaxation of the contract.
Q112 Mr Davidson: You have already done that once, have you not?
Mr Friedlos: No, we have not asked for a relaxation of the contract.
Q113 Mr Davidson: So what was it you asked for? Did you not come back and ask for something some time ago?
Mr Friedlos: We asked for some additional payments in respect of errors in the original bid data and where we were providing services in addition to those bid for.
Mr Hartnett: May I add a point which I think is really important here? Turning to the other side of HMRC's work, monitoring companies and taxpayers and the like, one of the things we often see is that property companies do not have a lot of equity in the actual property. It is different here. Mr Friedlos knows a great deal more than I do about this but what is clear to HMRC from work we have done recently is that there is equity in the properties that Mapeley hold that we use. I just wanted to make the point that it is really important to bear this in mind.
Q114 Mr Davidson: Thank you. May I ask about the refinancing gain of 30% and that has been agreed going forward? May I ask the Treasury or NAO whether or not that is a reasonable figure or would you normally expect it to be more?
Ms Wheeler: That was broadly in line with guidance, albeit that there was no provision in the contract for this gain. Then new Treasury guidance came out and that was viewed as appropriate. It is reasonable.
Q115 Mr Davidson: So that is a reasonable figure.
Ms Strathie: It is very reasonable and something we are not entitled to under the contract so it should be seen in that light as a real positive.
Mr Davidson: So Mr Friedlos is not as bad as we thought possibly.
Q116 Chairman: Mr Friedlos may I just return to Mr Bacon's question about the nature of your company. I am curious. How many people do you employ in Bermuda?
Mr Friedlos: We do not employ any people in Bermuda. Our investments are owned in Bermuda and we have a board of directors in Bermuda who make decisions.
Q117 Chairman: You have a board of directors. Do these people live in Bermuda?
Mr Friedlos: Yes, they are resident in Bermuda.
Q118 Chairman: But you are resident here and you pay tax here.
Mr Friedlos: Yes, I am resident here and I pay tax.
Q119 Chairman: So all your staff are employed here.
Mr Friedlos: They are.
Q120 Chairman: I am not in this high finance world; it is not our sort of world. Is this not all a bit odd that this chap seems to be paying tax here, working here having all his people here but he is an offshore company. I am very naive. Could you give me some help as a taxpayer?
Ms Strathie: The help I am going to give you is in the form of Mr Hartnett, the Permanent Secretary for Tax. It is something that I have had to get my head round along with all the rest of the learning about tax products.