TV Mrs Brown’s Boys’ £2m tax dodge
THREE stars of cult sitcom Mrs Brown’s Boys spent £2million in an offshore tax-avoidance scheme.
And it has also emerged F1 world champ Lewis Hamilton avoided paying tax on his luxury jet.
The latest leak from the Paradise Papers, which are exposing business accounts in controversial tax havens, shows Patrick Houlihan and Martin and Fiona
Delany transferred their fees into companies in Mauritius then sent the money back as loans.
Similar avoidance schemes have been challenged by the taxman in recent years.
Houlihan, 34, who plays Dermot, claimed they had all joined the scheme on advice of accountants and he did not really understand it. He said: “You never knew what the f*** was going on.”
Houlihan insisted the actors were only seeking to defer their tax bills, not avoid them, and claimed he always had reservations about signing up.
He said: “I was told the money went to a trust and it wasn’t mine until I received it, and I didn’t have to pay any tax until I got the money.
“I was in control of when I would pay the tax.”
Houlihan said he had recently taken a call from a journalist asking about the Mauritius scheme.
He added: “I was surprised and I hung up. Afterwards, I had to Google ‘tax avoidance’ to see what it meant.”
Houlihan admitted he was worried the scheme was the same as the one used by comedian Jimmy Carr, which then PM David Cameron described as “morally wrong”.
While the schemes are not illegal, the revelation will be embarrassing for the cast and for the BBC.
MP Meg Hillier, chair of the Commons public accounts committee, said: “If it’s not outside the actual rules, it’s certainly way outside the spirit of the rules.
“These people ought to look at themselves in the mirror and ask themselves whether it’s really fair what they’re doing.”
The leaked documents held by offshore law firm Appleby show how the stars put their fees from a production company owned by Brendan O’Carroll – the star of the show and father of Fiona Delany – in firms they controlled in Mauritius.
Last year, HMRC said it would investigate and challenge such practices.
A spokesman explained: “Scheme promoters will tell you that the payment is non-taxable because it’s a loan. In reality, you don’t pay the loan back, so it’s no different to normal income and is taxable.”
The Paradise Papers also reveal that British Formula 1 world champion Lewis Hamilton avoided paying tax on his £16.5million luxury jet.
They show a £3.3million VAT refund was given after the Bombardier Challenger 605 was imported into the Isle of Man in 2013.
But experts said it appears a leasing deal set up by advisers was artificial and did not comply with an EU and UK ban on refunds for private use.
Hamilton insisted he had instructed lawyers to check and was told the arrangements were lawful.
But Rita De La Feria, professor of tax law at Leeds University, said: “The only reason I can see for setting up these schemes is to hide private use and not pay VAT on it.”