Joined: 17 Oct 2007
Location: Rack 3, U40
|Posted: Tue Jun 19, 2012 11:25 am Post subject: How Jimmy Carr avoids tax
|Millions 'go into offshore scheme'
|Jimmy Carr is at the centre of a row over tax-dodging after it was revealed he uses an offshore scheme that could cut his income tax to just one per cent.
According to the front-page story on The Times – which features a huge picture of the comic – he squirrels away £3.3million a year into the K2 scheme.
His earnings from TV appearances, stand-up tours and DVD sales are allegedly funnelled into a Jersey-based company that then ‘lends’ him the money back. Since loans are untaxable, Mr Carr, like around 1,100 other K2 members, could avoid a hefty tax bill, perfectly legally
Carr is accused of hypocrisy as he previously lampooned Barclays bank’s tax avoidance on 10 O’Clock Live. On the Channel 4 show, he said: ‘Why don’t you apply for the Barclays’ one per cent tax scam? You will need the world’s biggest, most aggressive team of blood-hungry amoral tax lawyers. If you meet the criteria, you’ll pay one per cent tax, like Barclays do.’
Carr was named by The Times after they covertly recorded a meeting with Roy Lyness, director of Peak Performance Accountants.
‘How much is the highest amount you think we’ve got going through this solution?’ he said. ‘£3.3 million. That’s actually a well-known comedian.
‘He’s got his own company, it’s making about £4-£4.5million. He pays himself £100,000 salary and puts through £3.3 million.’
Although the accountant did not name Carr, The Times did their own research to identify him.
Carr set up the legal, but ‘aggressive’ strategy was set up by a company called Blue Cube, which is in Peak Performance’s network. One of the directors of Blue Cube is one of Carr’s old school friends, James Norman, who jointly owns a company called Offence Defence with Carr – the company through which the comic bought his multimillion-pound home.
Carr’s lawyers told The Times that his membership of K2 was disclosed to the relevant tax authorities in accordance with legal requirements and that he, like other high-net-worth individuals, managed his tax affairs efficiently.
They said that his financial arrangements were a private matter and the fact that he arranges his affairs in a tax-efficient manner, in common with other high-net-worth individuals, was completely un-newsworthy.
Ironically, The Times’s owner, Rupert Murdoch’s News Corp operates 136 subsidiaries in offshore tax havens – and has lobbied against pact that would have made it easier for the US government to crack down on tax abuses based in Panama.
Since the story broke, many commentators have pointed out that many people try to reduce their tax bill, Robin Ince – who once co-starred in a live show with Carr called Rubbernecker – tweeted: ‘Oh dear, seems people are questioning Jimmy Carr, who will be my moral compass now?’
Here is Carr mocking Barclays for its tax avoidance:
Chortle News Bot