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Christian Aid brands Katie Melua 'fallen hero' following alleged tax avoidance Christian Aid brands Katie Melua 'fallen hero' following alleged tax avoidance
(about 1 month later)
Katie Melua has been described as a "fallen hero" by charity Christian Aid, after the singer became one of many well-known names reportedly involved in a billion-pound tax avoidance scheme. Katie Melua has been described as a "fallen hero" by charity Christian Aid, after the singer became one of many well-known names reportedly involved in a billion-pound tax avoidance scheme.
Issuing a statement on its website entitled Fallen Hero: Christian Aid 'disappointed' at pop star tax dodging, the post describes the charity's dismay after the singer allegedly invested £850,000 in the Liberty tax strategy.Issuing a statement on its website entitled Fallen Hero: Christian Aid 'disappointed' at pop star tax dodging, the post describes the charity's dismay after the singer allegedly invested £850,000 in the Liberty tax strategy.
Melua, 29, was nominated for Christian Aid's Tax Superhero award four years ago after stating that she was compliant in her tax payments.Melua, 29, was nominated for Christian Aid's Tax Superhero award four years ago after stating that she was compliant in her tax payments.
"I pay nearly half of what comes to me in taxes, but I know I'm paying to live in a country with lots of amazing qualities," she told the Telegraph in 2008, after she was listed as worth £18m in the Sunday Times Young Rich list. "I have seen what it is like living in a country where people don't pay tax and have poor services in terms of health and education.""I pay nearly half of what comes to me in taxes, but I know I'm paying to live in a country with lots of amazing qualities," she told the Telegraph in 2008, after she was listed as worth £18m in the Sunday Times Young Rich list. "I have seen what it is like living in a country where people don't pay tax and have poor services in terms of health and education."
However, a reported database, leaked to the Times and revealed this week, states that 1,600 investors – including celebrities, business people and legal professionals – were part of a £1.2bn tax avoidance bid through the Liberty tax scheme.However, a reported database, leaked to the Times and revealed this week, states that 1,600 investors – including celebrities, business people and legal professionals – were part of a £1.2bn tax avoidance bid through the Liberty tax scheme.
A spokesperson representing Melua has told the Times that she had A spokesperson representing Melua has told the Times that she had invested on the suggestion of her accountants and had repaid the sheltered tax: "When HMRC stated they were reviewing the scheme, she paid the tax to HMRC in full. Accordingly, HMRC are not out of pocket and she has not avoided any tax liability."
invested on the suggestion of her accountants and had repaid the
sheltered tax: "When HMRC stated they were reviewing the scheme, she
paid the tax to HMRC in full. Accordingly, HMRC are not out of pocket
and she has not avoided any tax liability."
Joseph Stead, senior economic justice adviser at Christian Aid, said: "The news is very disappointing. Christian Aid believes it’s morally wrong for people to avoid paying their fair share of tax, because it undermines vital public services such as hospitals and schools and forces up taxes on people who are too poor or too honest to use such schemes.Joseph Stead, senior economic justice adviser at Christian Aid, said: "The news is very disappointing. Christian Aid believes it’s morally wrong for people to avoid paying their fair share of tax, because it undermines vital public services such as hospitals and schools and forces up taxes on people who are too poor or too honest to use such schemes.
"To be frank, finding celebrities we could use as examples to endorse our tax campaign was an uphill struggle as we have no idea about the tax status of most. Katie, however, seemed ideal because of her public pronouncements on the subject.""To be frank, finding celebrities we could use as examples to endorse our tax campaign was an uphill struggle as we have no idea about the tax status of most. Katie, however, seemed ideal because of her public pronouncements on the subject."
The charity also took to Twitter to further outline its stance on tax avoidance:The charity also took to Twitter to further outline its stance on tax avoidance:
The Times also claims that members of the Arctic Monkeys had each invested between £38,000 and £84,000 in fees to save between £557,000 and £1.1m.The Times also claims that members of the Arctic Monkeys had each invested between £38,000 and £84,000 in fees to save between £557,000 and £1.1m.