Headlines

February 26, 2009

U2, With Money In Tax Shelter, Accused of Robbing The World's Poor...

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Yahoo News UK:

The band moved the company U2 Ltd, set up to deal with royalty payments, to a finance house in Holland in 2006 after the Irish Government scrapped an artist income tax exemption scheme. The new limit was capped at 250,000 euros (£223,000).

The Debt and Development Coalition Ireland’s Nessa Ni Chasaide said: “We wanted to raise our concern that while Bono has championed the cause of fighting poverty and injustice in the impoverished world, the fact is that his band has moved part of its business to a tax shelter in the Netherlands.”

She added: “Tax avoidance and tax evasion costs the impoverished world at least $160 million (£142.5m) every year. This is money urgently required to bring people out of poverty.

Andy Storey from justice group Afri said tax is a fundamental question of global justice.

He said: “Lost taxes in impoverished countries far outweigh what they receive from rich countries in aid. There are trillions of dollars stashed in tax havens. If that money was taxed in the countries where it was earned, governments would have their own resources to improve the lives of their people.”

U2 Manager Paul McGuinness Responds via the Belfast Telegraph:

On the eve of their new album launch, the band’s manager, Paul McGuinness, last night rejected accusations of hypocrisy and said Bono, Larry Mullen, Adam Clayton and the Edge were all “personal investors and employers” in Ireland.

Addressing the issue of their tax affairs for the first time, Mr McGuinness said much of U2 paid different taxes in different countries.

But Mr McGuinness last night insisted the band is “fully compliant” with Irish tax legislation. “U2 is a global business and it pays taxes globally,” he said.

“At least 95pc of U2’s business—including record and ticket sales—takes place outside of Ireland and as a result the band pays many different kinds of taxes all over the world.

“They continue to remain Ireland-based and are personal investors and employers in the country.

“Like any other business, U2 operates in a tax-efficient manner.”


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Previous comments include

#1 djd says:

a: No.

#2 Audacious Aardvark says:

Ok, so maybe Bono and pals are hypocrites for urging governments to raise taxes to help the poor, all the while trying to reduce their own tax liabilities. Let's just admit that if none of the whiney liberals who think that taxes aren't high enough are willing to be the first into that pool. (Wanna bet that Babra Streisand has tax shelters out her copious ass?) But, the case isn't presented, in the above story, how it makes any difference to a poor Bengali or Somali or whomever whether U2 is taxed at the Irish rate or the Dutch rate. Does the Irish government devote more of its revenue to the chimera of global poverty relief than do the Dutch? Unless there is some connection that this story doesn't get, then the real headline is that U2, like everyone else, wants to keep as much of the money they earn for themselves as possible. They're just rational economic creatures -- like the Bengalis and Somalis would be if the tables were turned.


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