A Tale of Taxes – Laughing all the Way to the Tax Haven

Jimmy Carr is a successful comedian. He makes people laugh. His success enables him to earn a great deal of money, and people who earn a great deal of money are supposed to pay tax on what they earn as are people that earn modest amounts of money. In order to postpone or reduce the tax he paid Mr Carr entered into a tax scheme or device, under which he transferred his right to receive his salary to an offshore entity. However, Mr Carr still wanted to receive his salary and so as part of the deal, it seems, he borrowed money back from the entity. There would be no tax to pay on the loan, so he was in effect avoiding tax on a large income while still being able to spend it. Continue reading