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SHEIN Faces New Tax Scrutiny in UK as IPO Looms

The global fashion retailer SHEIN is under scrutiny again, this time facing allegations that its UK division has been shifting a vast bulk of income to

Published: Sep 8, 2025 3:56 PM

By Jeanel Alvarado

LawNews

SHEIN Faces New Tax Scrutiny in UK as IPO Looms

The global fashion retailer SHEIN is under scrutiny again, this time facing allegations that its UK division has been shifting a vast bulk of income to its Singaporean parent company to minimize its British tax burden. The controversy erupted just as SHEIN seeks an IPO and new legitimacy in Western markets, putting the spotlight on its corporate structure and tax practices.

Allegations of Tax Avoidance On September 6, several sources reported that watchdogs and UK tax experts accused SHEIN of transferring significant UK revenues to its Singapore headquarters in order to benefit from lower corporate tax rates.

The practice allegedly allows SHEIN to pay just £9.6 million in UK corporation tax despite reporting over £2 billion in UK sales last year, according to the Fair Tax Foundation.

The Corporate Structure & Regulatory Loopholes SHEIN, which originated in China but is now officially headquartered in Singapore, has faced similar tax scrutiny worldwide.

Its agile structure lets the company exploit various tax regimes by booking revenues and purchases outside the high-tax jurisdictions where most of its sales occur…

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SHEIN Faces New Tax Scrutiny in UK as IPO Looms

The global fashion retailer SHEIN is under scrutiny again, this time facing allegations that its UK division has been shifting a vast bulk of income to

Unlock the rest of this story

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