For years U2 was benefiting from Ireland's zero tax rate on musicians. Last year, the Irish govt decided to raise taxes on wealthy musicians. Seems fair doesn't it?
However U2 thought otherwise and promptly shifted its company overseas so that it could pay just 5%!!! U2 made about 110 million in 2005.
Meanwhile, Bono has been asking Ireland's Prime Minister to raise its share of overseas aid. Sounds quite hypocritical to me.
The Edge, defending the off-shore decision, argued:
'Our business is a very complex business. Of course we're trying to be tax-efficient. Who doesn't want to be tax-efficient?'
Yeah right. I bet next time his bank will be located in street with no name.
You can find out more details here
The Telegraph: U2 move their assets out
U2 avoids tax and ask others to donate
You know what the solution is- a flat tax. Every one pays 10% on their gross income. If you don't pay the tax, you stay out of the country.