Jimmy Carr has admitted to a massive error of judgment after pulling out of a tax avoidance scheme which was described as morally wrong. The K2 scheme protects money from tax in Jersey and Mr Carr has been exposed as the schemes biggest beneficiary. Mr Carr apologised to everyone in a statement on his Twitter page, promising to act more responsibly with his financial affairs in the future.
His 2.3 million followers read the statement in which he said it was a serious matter, he was not going to joke about it, as may be expected of the comedian. Mr Carr claimed he had been ill-advised by his financial adviser, who had asked if he wanted to pay less tax. He went on to say that although he has heard the K2 scheme is legal and fully enclosed to the authorities, he is no longer involved, and apologises to everyone.
His acknowledgement of guilt came after David Cameron called the avoidance of tax using this type of scheme morally wrong. Ed Miliband, leader of the Labour party, stated that politicians should not lecture people on the subject of morality. He went on to say that it did not mean he was in favour of avoiding tax, but that the right way around it would be to change the law.
Her Majesty’s Revenue and Customs (HMRC) confirmed that they are investigating the K2 scheme, vowing to challenge it where they can. HMRC went on to say that the Government is not going to allow anyone to get away with paying less than they should in tax.
It is understood that the scheme protects £168m a year from taxes. The Prime Minister, speaking at the G20 summit, has said that the schemes he has read about are wrong.