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Celebs exposed in £1.2bn tax avoidance scheme


CliveH

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From Investment Week

 

 

05 Oct 2012 | 08:01

 

Categories: Tax Planning Topics: Tax

 

"A number of celebrities, including Weakest Link presenter Anne Robinson and members of Take That, have been exposed as participants in a £1.2bn tax avoidance scheme, according to reports.

 

The Liberty tax strategy, based out of Jersey, enabled investors to escape income tax by paying 7p in the pound in fees.

 

According to a report in the Times, Robinson paid £280,000 to use the Jersey-based scheme to avoid tax on about £4m.

 

Meanwhile, Take That members Gary Barlow, Howard Donald and Mark Owen are understood by the paper to have sought to avoid tax on £6.5m through the scheme.

 

It was based on the buying and selling of dividends offshore, generating more than £1bn in artificial losses, which members could offset against their own tax bills.

 

The strategy came to the attention of HMRC in 2006, although it has taken more than six years to bring the scheme to a tax tribunal, which is expected to sit next spring.

 

While it was shut down after new legislation was brought in by the government, HMRC has yet to challenge the investors who avoided tax through the scheme, with an average of £300m sheltered a year between 2004 and 2008."

 

 

 

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If it ain't illegal who can blame them?

 

Don't knock it Clive - without tax avoidance, tax reduction, tax saving schemes - call them what you will - how would your income look!!

 

It is a glaring failure by HMRC and successive governments not to close loopholes as soon as they are discovered by very these enterprising non governmental experts - so instead of doing what they should have done in the first place they get the media to blame the members of the public who have the audacity to use legal means to avoid (NOT evade) paying tax. Clever eh? Or just jealousy?

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Bloody taxman >:-(

As my ex employer was late submitting tax for last year taxman decided that I had overpaid and sent me cheque for £450, phoned them up and was told to return cheque and employer had to sort out tax, this was done and recieved letter to confirm, now I've been sent a bill as they assumed the ammended tax return was extra pay and that two employers each used my tax allowance, so I've now got a bill which even asked for return of the £450 which I've already sent back >:-(

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Tracker - 2012-10-05 11:12 AM

 

If it ain't illegal who can blame them?

 

Don't knock it Clive - without tax avoidance, tax reduction, tax saving schemes - call them what you will - how would your income look!!

 

It is a glaring failure by HMRC and successive governments not to close loopholes as soon as they are discovered by very these enterprising non governmental experts - so instead of doing what they should have done in the first place they get the media to blame the members of the public who have the audacity to use legal means to avoid (NOT evade) paying tax. Clever eh? Or just jealousy?

 

I don't

 

I'm one of the guys that advise some clients to set up a company rather than remaining self employed!!

 

IR35 is easy to circumvent if you know how and have more than one contract/client.

 

I do not blame these "celebs" at all.

 

Adele stated that when she earned £10M from an Album and found out that the taxman was going to take £5M her reaction was "unprintable" - off!

 

And I have to say I have a lot of sympathy for her.

 

I also have considerably more sympathy for the young lad who wants to work but finds that he cannot afford the 20 mile journey to work and back due to the 70% tax on petrol which means that he pays more tax on his fuel costs than he does in income tax.

 

Both are real examples of how tax is no longer simply a way of paying for State run benefits that can help us all but a huge burden on those that have low to average incomes because the " system " now dictates that per £ earned - they pay by far the highest percentage of salary/earnings.

 

More and more people now decline to pay tax both at the low end and the high end of the earnings spectrum.

 

 

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Guest pelmetman
CliveH - 2012-10-06 12:09 PM

 

I'm one of the guys that advise some clients to set up a company rather than remaining self employed!!

 

More and more people now decline to pay tax both at the low end and the high end of the earnings spectrum.

 

 

I dunno Clive......I stayed self employed......yet I cant remember a time when I earnt so little yet enjoyed myself so much ;-)

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