David Beckham, as well as a slew of other A-listers, may be forced to pay big bucks amid accusations they were involved in tax avoidance schemes.
The former soccer star invested in the company Ingenious Media, which used funds to back blockbuster films, also making celebrities directors in various partnerships. These collaborations recorded early losses, which the participants could then offset their tax bills against.
The Financial Times states investors involved — like Sir Michael Caine and George Michel, several reports claim — will most likely have to “reach an immediate settlement” with HM Revenue & Customs or battle the decision in court.
Ingenious denied their partnerships are schemes, insisting they’re real businesses, while a spokesperson for the Beckhams told The Sun the couple “always paid their taxes in full and have never been involved in aggressive tax avoidance schemes.”
While there are many different types of schemes out there, this case most likely involves an investor putting money into a venture that makes losses, according to BBC News. The losses can then be set against other earnings, bringing an individual’s total income down, resulting in a lower tax bill.
The investigation into the validity of the company is ongoing.
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