Take That and the Taxman – an explanation and our opinion on the subject.
TAKE THAT CAUGHT USING TAX EVASIVE MEASURES
The front page of tomorrows Times newspaper in the UK will undoubtedly carry a photo of Gary Barlow with some headline like ‘Take That Tax Man’ or some other pun along those lines.
But what does it all really mean? Well in essence it means that Gary Barlow, Howard Donald, Mark Owen and their manager Jonathan Wild have taken advice from their financial advisers and decided that using offshore investment agencies is the best way forward. There are over 1,000 people who also use the scheme, it means essentially that users pay themselves a yearly salary of £100,000 which they pay tax on in the UK, the rest of their money is invested in companies such as ‘K2′ which take their money away from the UK and therefore they aren’t taxed on. Edit: the company TT are involved with are Mulbury Hamilton.
In Take That’s camp they have invested over £26 million in the scheme..they would have to pay 50% tax on that amount being high-earners in the UK. This means that the UK tax system has ‘lost’ £13 million from money arguably generated mainly in the UK from album and ticket sales. However, to my knowledge this practise isn’t illegal just maybe seen by some as immoral.
It is worth noting that Jason Orange (according to current reports) did not use this scheme. He has long been know for using ethical companies to deal with his money. Robbie Williams is also not named in the report.
Jason has stated that he feels differently to his band-mates about money, he doesn’t like to ‘splash’ his cash on cars and clothes..
“I’ve got my money in a Manchester investment firm who only get involved with ethical projects. I want my money to go into wind power and renewable energy. Everything has to be Fair Trade or operate an ethical practice. It means a lot to me.”
“When I was younger it was all about trying to double and treble my money but this time round it’s more important to me that the money is making a difference at the same time.”
How the press treats the ‘Take That’ brand though will depend mainly I think on public reaction to the story, the TT brand is currently very strong but in times of economic struggles people don’t like to read these stories and think of others struggling or the NHS and libraries etc suffering as a result of greed.
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