Gary Barlow urged to give back OBE over millions owed in tax dodging scam

A judge ruled that members of the boy band Take That avoided paying taxes through an investment scheme.

14:44 12 May 2014

Members of the former boy band Take That including Gary Barlow, Howard Donald, Mark Owen and their manager Jonathan Wild could now be forced to repay tens of millions of pounds after Judge Colin Bishopp ruled that the group avoided paying taxes by participating in a questionable music-industry investment scheme called Icebreaker partnerships. 

 

The Icebreaker partnerships investment were boosted by 51 members, who did not made a profit despite supposedly investing in range of artists, by taking out loans with Barclays and SG Hambros banks to inflate the amount which could be offset against tax. 

 

The judge said: “Icebreaker is, and was known and understood by all concerned to be, a tax-avoidance scheme. The predominant purpose of entering the scheme was to achieve a tax saving.”

 

A HMRC spokesperson said that the agency will not tolerate abuse of the system by people who are trying to dodge their tax obligations: “HMRC has put in place generous reliefs to support genuine business investment and our tax reliefs for the creative industries work well, enabling the UK’s world-class film, television and video production companies to compete on the global stage.”

 

“HMRC will continue to challenge in the courts and anyone who engages in tax avoidance schemes risk not only the high cost of these schemes but also lay themselves open to penalties and, potentially, prosecution.”

 

Meanwhile, Take That members have previously stated that they did not believe they were taking part in tax-avoidance practices. It is thought that bandmates Jason Orange and Robbie Williams were not involved. 

 

The ensuing scandal has resulted in calls for Barlow's OBE to be taken off him, but a string of supporters has defended him including Prime Minister David Cameron who highlighted the millions of pounds that the singer/songwriter has raised for charity through Children in Need.