Carr admits tax 'error of judgment' (From Southend Standard)

Carr admits tax 'error of judgment'

2:54pm Thursday 21st June 2012 in National News © Press Association 2013

Jimmy Carr has admitted he had made a "terrible error of judgment" over his tax arrangements and has apologised for his actions.

The comedian, who is said to have used an aggressive but legal tax-avoidance scheme, spoke out after Prime Minister David Cameron called his tax dodging "morally wrong".

Carr released a statement saying: "I appreciate as a comedian, people will expect me to 'make light' of this situation, but I'm not going to in this statement as this is obviously a serious matter. I met with a financial adviser and he said to me 'Do you want to pay less tax? It's totally legal'.

"I said 'Yes'. I now realise I've made a terrible error of judgment. Although I've been advised the K2 Tax scheme is entirely legal, and has been fully disclosed to HMRC (Her Majesty's Revenue and Customs), I'm no longer involved in it and will in future conduct my financial affairs much more responsibly. Apologies to everyone."

His statement came amid reports that he had bought his £8.5 million three-storey home in north London outright and had not taken out a mortgage.

Speaking to ITV News during a visit to Mexico, Mr Cameron joined a chorus of criticism of the comedian, whose tax arrangements were disclosed in The Times on Tuesday.

Describing them as "straightforward tax avoidance", the PM said it was unfair on the people who pay to watch the comic perform that he is not paying his taxes in the same way that they do. He said: "I think some of these schemes - and I think particularly of the Jimmy Carr scheme - I have had time to read about and I just think this is completely wrong."

But shadow leader of the house Angela Eagle questioned Mr Cameron's decision to speak out about Carr's tax arrangements while remaining silent about those of other high profile figures. It has been alleged that Take That singers Gary Barlow, Howard Donald and Mark Owen, and the band's manager Jonathan Wild, invested at least £26 million in a scheme run by Icebreaker Management Services - which says it works within the law.

Speaking in the Commons, Ms Eagle questioned why Barlow had been awarded an OBE and why he had escaped criticism from Mr Cameron when Carr had not. And she added: "Sir Philip Green has interesting tax arrangements, but far from being labelled morally repugnant in a Mexico TV studio, he has got a Government review to head up."

Downing Street defended Mr Cameron's decision to comment on a particular individual's tax affairs - in contravention of normal government practice - and welcomed the apology by Carr. However the spokeswoman refused to comment on Barlow's tax arrangements.