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Home Page > News > Director of charity One says U2’s Bono’s tax strategy is “perfectly legal”

Director of charity One says U2’s Bono’s tax strategy is “perfectly legal”

Irish-born Jimmy Carr’s tax scheme sparks further discussions on high-earners tax arrangements

LAURA BRYN SISSON,

IrishCentral Intern

Published Tuesday, June 26, 2012, 7:58 AM

Updated Tuesday, June 26, 2012, 10:01 AM

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U2's front man...not yet a billionaire....Bono

U2 singer Bono’s tax arrangements are “perfectly legal,” according to Jamie Drummond, executive director and co-founder, with Bono, of One, a global aid advocacy group.

Drummond told the Irish Times that “the amount of work, time and sweat equity and the money [Bono] spends on [One] is phenomenal.” Bono’s involvement with One does not constitute tax evasion.

Bono and Drummond frequently travel to Africa together to support One, he said.

Bob Geldof, another advocate for the One campaign, reportedly uses his non-domiciled status in the UK to avoid income and capital gains tax, prompting questions of hypocrisy, according to reports in The Week.

One deals with tax issues in order to help African governments find revenue to reinvest in their own economies, and not with the personal taxes of Bono or Geldof, according to Drummond.

The personal finances of the stars are “non-relevant” to their urging of development, and the band’s tax affairs are controlled by the band management.

Bono and Geldof are “not engaged in tax avoidance as I understand it,” Drummond said. “They are engaged in perfectly legal matters.”

U2 moved some of its business arrangements to the Netherlands in 2006 in an attempt to escape Ireland’s taxes on royalties, which changed in 2005, limiting the band’s former tax arrangements. Bono was criticized for hypocrisy at the time due to his
simultaneous urging for developed countries to increase their global aid contributions.

Drummond’s defence came after British Prime minister David Cameron’s condemnation of Irish-born comedian Jimmy Carr’s tax scheme (20th June), reported in the Huffington Post, sparked public concern over tax evasion strategies among the wealthy. Carr funnels money through K2, a company which then lends the money back so that it is not subject to income tax.

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jrtm | Jul 01, 2012, 09:36 AM EDT

I have no issue with what Bono does with his Tax and that is simply because the Band pay millions in taxes the world over. I am confident if the Bands taxes world wide were revealed since they have been in existence you will find it is in the hundreds of millions of dollars.

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merefalow | Jun 29, 2012, 07:48 PM EDT

you cant blame rich people from using smart lawyers to provide legal tax avoidance,who you can blame is the rotten corrupt useless crooked politicions who draft the laws that allow it to happen,not least because they probably use the same tax avoidance schemes themselves.

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Eurocross | Jun 27, 2012, 01:18 PM EDT

Brian O this is not about figuring out the rules, these accountants know EXACTLY what they are doing. They are in business to exploit the rules. Its like you or I going to a soup kitchen because its a way of getting a free meal even though we are not homeless. The good people of the soup kitchen aren't going to turn you away or ask you to prove that you are homeless - you just turn up and you get a free meal and you save some money because you don't have to buy your own food. You're not breaking the law but its morally objectionable because the soup kitchen wasn't inteneded for people like you. Jimmy Carr was involved in an aggressive and deliberate tax avoidance scheme the sole purpose of which was to pay the least amount of tax he could get away with. He wasn't trying to figure out the rules. He was exploiting them. And that my friend is what Bono does.

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BrianO | Jun 27, 2012, 08:16 AM EDT

All the advocates for big government crying over one of their own using the system to bypass the system, beautiful. You can't complain, for you have the complicated big government system that you have lobbied for. But you do complain, why? Because you expect big government to be moral and fair, when it is larger than any of the evil corporations you rail against. It is not immoral to follow the rules set down by the government entity you live under. To break the rules is immoral. If you believe the rules to be immoral then change the rules. I would suggest you have less rules, easier to follow, that don't require a team of accountants to figure out. You know smaller government and more reliance on individual freedom. As for Mr. Bono, people seem to like his music and give him money for it. I don't tell people what to do with their money, I do tire of celebrities telling me what to do with my money. In the end we all end up in the same place, for those that believe the moral question will be raised for sure. For those that don't believe it really won't matter in the cosmic scheme of things.

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bogsidebunny | Jun 27, 2012, 03:48 AM EDT

Of course ole Bono's money evacuation is legal. He ain't totally stupid. But is it MORAL?

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misneac | Jun 26, 2012, 08:41 PM EDT

Why dont Mr.Bono and Geldoff f---k off out of Ireland and stop this constant self promotion as the saviours of the world .My brother is involved for 40 years in saving peoples lives in Africa .The last thing he wants to see is the likes of these people arriving with their media entourage ,raising the expectations of the native people ,and when these expectations are not met putting the lives of their resident benefactors at risk .Piss off Bono to the Netherlands ,and give them lectures on how to run their country !

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merefalow | Jun 26, 2012, 06:47 PM EDT

i am sure it is legal, that's why fat cats have highly priced accountants,what wrong are the corrupt laws and legislation that do not prevent it,,jimmy Carr has just apologized for,quote,making a big mistake,whats the mistake,his accountant was brilliant saved him,3.5 million pounds ,where the mistake considering its LEGAL.if he feels that bad he could always pay it back,no sign of that though,he,s the tip of the fat cat don't pay any tax brigade,totally rotten corrupt system,by the rich for the rich.a system that destroyed Greece.

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WoundedKnee | Jun 26, 2012, 04:36 PM EDT

The other posters have pretty much nailed it. Legal it may be, but moral? If Mick Jagger was doing this I'd have no problem with it, since Mick never bores us with preachifying. But the santimonious Bob and Bono should shut up.

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lokionline | Jun 26, 2012, 12:34 PM EDT

Claiming something is “perfectly legal”, is the first clue that there is something morally questionable about what is going on here. The first line of defense in such matters should always be "What we did was the right thing to do" only then should the legal status be offered as supporting that fact. That is basic "PR 101". If I were Bono I would be having a quiet chat with Jamie Drummond about his messaging.

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bbj3212 | Jun 26, 2012, 11:55 AM EDT

Legal maybe, but not morally justifiable. From time immemorial, if you have enough money you can avoid paying taxes so the rich get richer and the poor who have to make up the shortfall, get even poorer. Some justice!

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Portia777 | Jun 26, 2012, 10:28 AM EDT

Bob Geldof slams reporter who 'lectured' him on tax morals. Ahhh poor Bob always reacts like this when the truth is revealed.Bob pointing his finger while 3 fingers pointing at himself. Ouch, truth hurts

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Portia777 | Jun 26, 2012, 10:23 AM EDT

One deals with tax issues in order to help African governments find revenue to reinvest in their own economies, and not with the personal taxes of Bono or Geldof, according to Drummond. He must think people are stupid to still believe this untruth. The only truth in Africa is the rich providing money to both sides to keep wars going- just as it always was with the Roman church .

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Portia777 | Jun 26, 2012, 09:18 AM EDT

Yes it is legal as all tax is unlawful. As members of the elite Bono and Bob know how to avoid tax. So while it is legal it is not just for the rich to become richer while the poor become poorer.

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