Gary Barlow reportedly to pay back millions after tax avoidance
10 MAY 2014Gary Barlow and two of his fellow Take That band members have been accused of tax avoidance.
According to The Times Gary, Mark Owen and Howard Donald now face having to pay back tens of millions of pounds after a court found that they were part of a tax avoidance scheme.
The newspaper reported that the trio and their manager Jonathan Wild "poured £66 million into two partnerships styled as music-industry investment schemes but which were artificial tax shelters for the super-rich."
The partnerships are said to have been set up by a company called Icebreaker Management to offer musicians the chance to avoid paying tax on roughly £63million earned through world tours and record sales.
Judge Colin Bishopp, who led the hearing on Friday told The Times: "Icebreaker is, and was known and understood by all concerned to be, a tax avoidance scheme.
"The aim was to secure [tax] relief for members, and to inflate the scale of the relief by unnecessary borrowing," he said. "No serious or even moderately sophisticated investor, genuinely seeking a profit... would rationally have chosen an Icebreaker partnership.
"The predominant purpose of entering the scheme was to achieve a tax saving."
Howard Donald, Gary Barlow and Mark Owen at the Ivor Novello Awards
Neither Gary, Mark, Howard or Jonathan has commented on the claims so far, although in 2012, when the allegations were first made, in 2012, lawyers representing the men confirmed they were investors in the partnerships, but believed they were legitimate enterprises and not tax-avoidance schemes.
The situation is similar to that of BBC radio 1 DJ Chris Moyles.