More celebrity financial secrets are exposed in the latest round of tax management revelations looking at offshore financial centres.
Weakest Link presenter Anne Robinson and several members of boy band Take That are accused of taking part in an ‘aggressive’ tax management plan that allegedly generates false losses to set off against income tax.
The £1.2 billion Liberty tax shelter is based on the Channel Island of Jersey.
Investors paid in their earnings and paid just 7p in the Pound as fees.
The Times newspaper has published a report claiming Ms Robinson paid £280,000 to use scheme to save about £4 million income tax, while Take That’s Gary Barlow, Howard Donald and Mark Owen are said to have put £6.5 million through the scheme.
£300 million tax saving
Liberty bought and sold dividends offshore, generating more than £1 billion in paper losses, which investors could then use to reduce their tax bills.
HM Revenue & Customs has had the scheme under review for six years, culminating in an investigation which will result in a tax tribunal hearing early next year.
If the scheme is found to be operating outside tax rules, HMRC stands to recoup millions in taxes from celebrities and other wealthy investors, plus fines and interest on the payments.
Although the scheme no longer operates, HMRC estimates the investors gained £300 million in tax between 2004 and 2008.
This is the second offshore tax scheme involving celebrities to gain publicity in recent weeks.
Crackdown on wealthy
Comedian Jimmy Carr and Take That’s Gary Barlow were outed as investors in another tax management exercise in the Channel Islands in another report carried by The Times.
Another investment vehicle that includes star names like David Beckham and Wayne Rooney is under investigation by HMRC for generating losses from investments in feature films.
The government has promised to crackdown on tax management by Britain’s wealthiest earners by forming a new task force to look at the financial affairs of everyone worth more than £1 million.
The Treasury is also keen to stamp out public payments to private companies based in other countries.
