Tuesday, June 19, 2012

Twitter turns on Jimmy Carr over tax scheme

An investigation by the Times alleges that Carr has been using the "K2" tax scheme. Under the system, the beneficiary transfers income to a trust based in Jersey, which then loans him or her the money back. Since the loan could theoretically be recalled, it is not liable for income tax.

The paper reported that the total lost to the taxman from the 1,100 individuals employing this arrangement could be as much as ?168 million. Carr is alleged to save ?3.3 million a year through the K2 scheme.

Some tweeters questioned the focus on Carr, with Rhodri Marsden suggesting "the Times headline should really say 'Jimmy Carr employs accountant'." Many argued that little has been done to address widespread, off-the-shelf tax avoidance by the wealthy since George Osborne professed himself "shocked" at levels of tax avoidance last year.

Others pointed out that corporate tax avoidance remains a big problem. "Jimmy Carr avoided 1/2000 of what Vodafone still haven't paid," said Steve Anderson."They go after him first?"

But the news was welcomed further afield, with Irishman Denis Rodgers tweeting that "in Britain they name and shame tax avoiders... in Ireland we get them to present freedom of cities," a reference to U2 singer Bono, whose tax avoidance measures were uncovered last year.

The revelations are particularly embarassing given that Carr has used his comedy to lash out at tax avoidance in the past. In a sketch on 10 O'Clock Live last year, Carr appeared as a buxom blonde bank clerk offering the audience the chance to tax part in the "Barclays' one per cent tax scam".

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