Bob Geldof is dragged into fraud row amid claims his 2011 album flop was funded by a tax avoidance scheme
- How To Compose Well-liked Songs That Will Promote was not a business success
- Now solo album is a part of a authorized row, as funding agency claims it was duped
- Lochurst LLP stated Geldof ‘misrepresented’ the required funding for album
- Invoices had been introduced that prompt ‘5 occasions extra prices than wanted’
- Lochurst paid Icebreaker Administration, which misplaced a ruling towards the HMRC
- In 2014, courts dominated Icebreaker was a tax avoidance scheme for wealthy celebrities
- Gary Barlow Mark Owen and Howard Donald had been amongst these caught out
Shari Miller For Mailonline
An funding firm claims Sir Bob Geldof ‘misrepresented’ how a lot cash was wanted for his 2011 solo album
Sir Bob Geldof has discovered himself on the centre of claims over tax avoidance and fraud within the funding of his 2011 solo album.
How To Compose Well-liked Songs That Will Promote was neither a business or skilled success for The Boomtown Rats frontman, having made it to solely 89th place within the charts after it was launched in February 2011.
Now the album might additionally spell a authorized catastrophe for Geldof, after an investor who helped pay for the album stated the 67-year-old Irish-born musician had ‘misrepresented’ how a lot cash was wanted and introduced invoices that prompt ‘5 occasions extra prices than had been wanted’.
Lochurst LLP, primarily based in Nice Yarmouth, has filed paperwork on the Excessive Court docket claiming it was duped by Icebreaker Administration, which had assisted in elevating funds for Geldof’s album.
The latter, which was dissolved final month, got here beneath intense scrutiny in 2014 after HM Income and Customs (HMRC) gained a ruling that the funding service supplied by Icebreaker was in actuality a tax avoidance scheme.
Amongst these caught out had been Gary Barlow and fellow Take That members Mark Owen and Howard Donald, in addition to their supervisor Jonathan Wild.
Collectively, they invested £66million into Icebreaker Administration, which styled itself as a music-industry funding scheme.
However the courtroom dominated it was actually a synthetic tax shelter for the super-rich.
Talking on the time, Choose Colin Bishopp stated: ‘Icebreaker is, and was identified and understood by all involved to be, a tax avoidance scheme.
How To Compose Well-liked Songs That Will Promote was not a business or skilled success
‘The purpose was to safe [tax] reduction for members, and to inflate the dimensions of the reduction by pointless borrowing.’
He added: ‘No severe and even reasonably refined investor, genuinely in search of a revenue… would rationally have chosen an Icebreaker partnership.
‘The predominant goal of getting into the scheme was “to attain a tax saving”.’
HMRC subsequently started chasing traders to pay the tax owed, together with Lochurst.
However Lochurst alleges that it was duped by Icebreaker and there have been questions over Geldof’s involvement.
His accountant Patrick Savage advised The Instances that Geldof and his manufacturing firm deny the allegations.
Icebreaker stated the claims had been ‘utterly unfounded’.
Gary Barlow, Howard Donald and Mark Owen had been amongst these caught out by investing tens of millions into Icebreaker Administration, which the courts dominated was a tax avoidance scheme