Last week, it emerged that comedian Jimmy Carr has been using a tax-avoidance scheme to pay only 1% income tax, effectively saving himself £1.6million every year. The scheme, which is completely legal, works by allowing investors to pay in their earnings, and then have them loaned back to them. As the loan could technically be recalled by the company, it does not qualify for income tax.
This is quite a complex issue, with Twitter naturally a hub of jokes, fury and denial. There were three main camps that people seemed to fall into;
- The scheme was legal, he did nothing wrong.
- This is disgraceful.
- It was wrong, but well done Jimmy for handling it so well.
I’d like to address each of these points which, in themselves, bring up a lot of other issues.
He did nothing wrong
Of course, the most obvious defence here is that the…
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