David Cameron joins the attacks on Jimmy Carr over 'morally wrong' scheme to avoid tax
But Prescott accuses PM of double standards with tweeted reference to Lord Ashcroft
David Cameron was accused of hypocrisy last night after he joined the outcry over celebrities trying to avoid taxes through complicated schemes sheltering their income.
Mr Cameron denounced the stand-up comic Jimmy Carr as "morally wrong" for putting his earnings into a "very dodgy tax avoiding scheme".
Carr is reportedly among high-earners who cut their tax rates to as little as 1 per cent by channelling cash through a Jersey-based company.
But Mr Cameron refused to be drawn on separate claims that Gary Barlow and other members of the Take That pop group had also put their money in a scheme designed to avoid tax. The disclosure was embarrassing for him as Barlow campaigned alongside the Tory leader at the last general election and received the OBE last week.
A drive against tax avoidance schemes was one of the high-profile measures in the Budget in March.
Last night the former Labour deputy leader Lord Prescott accused Mr Cameron of double standards.
He pointed to Lord Ashcroft, the former Tory deputy chairman, who was not domiciled in Britain for tax purposes despite sitting in the House of Lords. Lord Prescott tweeted: "So if you're a comedian and avoid tax, the Tories condemn you. If you're a millionaire donor and avoid tax, you get a peerage! #ashcroft"
When it emerged in 2010 that Lord Ashcroft was a non-dom, Mr Cameron said: "I've always taken the view that someone's tax status is between them and the Revenue."
But yesterday, during a visit to Mexico, Mr Cameron singled out the "Jimmy Carr scheme", saying: "People work hard, they pay their taxes, they save up to go to one of his shows. They buy the tickets. He is taking the money from those tickets and he, as far as I can see, is putting all of that into some very dodgy tax avoiding schemes."
Carr, who has lampooned wealth bankers, reportedly protects £3.3m a year by putting cash through Jersey-based K2. It transfers salaries into a trust, which then lends the cash back to the investors. Because they have technically received a loan that can be recalled, the money is not liable to income tax.
Confronted about his financial arrangements during a show in Tunbridge Wells, Kent, Carr told a heckler: "I pay what I have to and not a penny more."
It has also been alleged that Barlow, Howard Donald, Mark Owen and the Take That manager Jonathan Wild invested at least £26m in a scheme run by Icebreaker Management Services. They are said to be among 1,000 people who contributed £480m to an investment scheme described by HM Revenue and Customs as a tax shelter. The company maintained yesterday it operated "within the law".
Actress sees off speculation about her appearance in an amazing way
Review: Despite an uphill climb to see Jake Bugg in action, his performance is notably flat
Powerful images of strays taken moments before being put down
Review: Witty banalities aside, the comedian has an authentic voice
The Washington Post editor helped Bob Woodward and Carl Bernstein bring down President Nixon
- 1 Salisbury ranked seventh-best city in the world to visit in Lonely Planet’s Best in Travel 2015
- 2 Disney announces new female-led film Moana
- 3 Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
- 4 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
- 5 Russell Brand threatened with arrest after filming outside Fox News headquarters
Chicago voter tells Obama 'don't touch my girlfriend' – Obama stays super smooth
Oscar Pistorius: The brutal prison life that awaits disgraced athlete
Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
Raphael Ravenscroft dead: 'Baker Street' musician who played the most famous saxophone solo for just £27, dies aged 60
Darren Vann: Indiana man arrested for murdering teenage prostitute confesses to six other murders - and police fear more
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Jose Manuel Barroso warns David Cameron against making 'historic mistake' over immigration reforms
£21000 - £35000 per annum: Randstad Education Cambridge: Science teacher requi...
£36000 - £60000 per annum: Randstad Education Southampton: Our client are a we...
£22000 - £32000 per annum + TLR: Randstad Education Southampton: Our client is...
£300 - £350 Per Day: Clearwater People Solutions Ltd: The role could involve w...