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Stars face massive payback demands as HMRC probes

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    Stars face massive payback demands as HMRC probes

    Jeremy Paxman, Anne Robinson, Steven Gerrard, Wayne Rooney, Guy Ritchie and dozens of other celebrities invested up to £1.4m each

    Dozens of Britain's highest paid celebrities and business chiefs have been caught up in an investigation into an alleged tax avoidance scheme.

    England soccer stars Wayne Rooney and Steven Gerrard, BBC presenters Jeremy Paxman and Anne Robinson, film-maker Guy Ritchie, pop star Peter Gabriel and Labour peer Lord Hollick were among those who pumped money into a fund that exploited a legal loophole giving tax benefits to those investing in the film industry.

    Documents seen by The Mail on Sunday suggest they invested sums ranging from £160,000 to £1.4million. Some other investors have already received tax demands for tens of thousands of pounds - big investors may face bills of more than £1million.

    Under a policy set up by Gordon Brown when he was Chancellor, investors could slash their tax bills if they backed the film industry. Around £2billion a year was subsequently invested in film funding schemes.

    However, HM Revenue & Customs officials now believe that at least one £75million investment fund used by celebrities might have been aimed primarily at avoiding tax and not bolstering the British film industry, so was against the rules.

    Stars were partners in schemes run by finance company Ingenious Media, founded by chairman Patrick McKenna. The company has raised about £5billion to put into films over the past decade, including such hits as Avatar and X-Men Origins: Wolverine and Night At The Museum.

    The celebrities' names were officially recorded at Companies House, where the partnerships are registered.

    More: http://www.dailymail.co.uk/news/arti...-loophole.html

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    #2
    'Legal loophole' that favourite term used by dodgy scheme sellers.

    What that really means is an 'artificial arrangement' to avoid paying high rate tax.

    Comment


      #3
      Originally posted by Iron Condor View Post
      'Legal loophole' that favourite term used by dodgy scheme sellers.
      The term "legal loophole" is used by the Daily Mail in its story, not by those operating the scheme.

      "Favourite term used by lazy journalists addicted to clichés" would be nearer the mark.

      Comment


        #4
        Originally posted by NickFitz View Post
        The term "legal loophole" is used by the Daily Mail in its story, not by those operating the scheme.

        "Favourite term used by lazy journalists addicted to clichés" would be nearer the mark.
        Its a term i have heard more than one IT contractor use in the past to justify paying almost zero percent tax on most of their earnings.

        Comment


          #5
          Originally posted by NickFitz View Post
          not by those operating the scheme.
          They probably did not use word "scheme" either...

          Comment


            #6
            Atw, you're a slacker!

            Is that all you can post from the Sunday papers?

            What about Liam Halligan's excellent Greek saga won't kill the euro but the end may begin here

            or David Smith in the Times, commenting on the letter from notable Economists regarding cutting the budget deficit
            How did this happen? Who's to blame? Well certainly there are those more responsible than others, and they will be held accountable, but again truth be told, if you're looking for the guilty, you need only look into a mirror.

            Follow me on Twitter - LinkedIn Profile - The HAB blog - New Blog: Mad Cameron
            Xeno points: +5 - Asperger rating: 36 - Paranoid Schizophrenic rating: 44%

            "We hang the petty thieves and appoint the great ones to high office" - Aesop

            Comment


              #7
              Originally posted by AtW View Post
              Under a policy set up by Gordon Brown when he was Chancellor, investors could slash their tax bills if they backed the film industry. Around £2billion a year was subsequently invested in film funding schemes.

              However, HM Revenue & Customs officials now believe that at least one £75million investment fund used by celebrities might have been aimed primarily at avoiding tax and not bolstering the British film industry, so was against the rules.
              This happens time and time again with Gordon's legislation. He is incapable of writing it properly.

              I'm glad he's never written safety procedures for aircraft or trains.

              Comment


                #8
                Originally posted by Doggy Styles View Post
                He is incapable of writing it properly.
                There shouldn't be any special tax breaks for nobody - one simple tax system, with reduced rate of tax on any earnings above high threshold - it is those guys who'd try to game system in the first place: if tax is 20% or so then it would not be worth taking the risk.

                On the other hand those who'd continue to game system should face extremely harsh penalties.

                Comment


                  #9
                  Originally posted by HairyArsedBloke View Post
                  Atw, you're a slacker!

                  Is that all you can post from the Sunday papers?

                  What about Liam Halligan's excellent Greek saga won't kill the euro but the end may begin here

                  or David Smith in the Times, commenting on the letter from notable Economists regarding cutting the budget deficit
                  I am working today since morning - fixed couple of bugs, more left

                  Comment


                    #10
                    Originally posted by AtW View Post
                    On the other hand those who'd continue to game system should face extremely harsh penalties.
                    NO, you cannot penalise someone for playing by the rules.

                    If you are making subjective judgements about what you may or may not like about something done within the rules, it's like a software system that does things on a whim, rather than following its code.

                    Rules are rules. If people are able to game them, blame the legislators for writing them badly. Or in many cases, writing them at all.

                    Comment

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