Colin Jackson has been named as one of the high-profile names involved in a tax avoidance scheme called Icebreaker.
The Olympic hurdler and BBC broadcaster was one of 23 members of a company called Sparkdale LLP that invested in Icebreaker partnerships – which were billed as music industry investments.
However, last week Judge Colin Bishopp said that the company was in fact “known and understood by all concerned to be a tax avoidance scheme".
Sparkdale claimed losses of £9,399,878 from its investment in Icebreaker, which could be then used by members to offset their tax liabilities.
Jackson has defended his involvement in the scheme.
“The law of the land had stated that you can write those losses off on personal tax if you lose. If you gain, you have to pay the tax,” he told the BBC.
"They've now rethought it, reissued it and said those schemes won't exist anymore, which is absolutely fine because that certainly won't stop me from investing into young people who need the help."
Three members of Take That, including Gary Barlow, were also found to be using Icebreaker and are expected to repay millions owed.
"If it means you have to take a hit then I'll happily take a hit,” continued Jackson.
“People have invested in me in the past to help me get to the top of my game.
“I'll still invest in people to help them get to the top of their game.”
Cumulatively, 50 partnerships with hundreds of members were investing in the Icebreaker scheme.
David Cameron has criticised tax avoidance initiatives, but rejected calls for Barlow to have his OBE revoked.