Righto, so One Direction have reportedly copped a ginormous £24.7 million tax bill (about $45 million AUD), two years after the band announced their hiatus in order to explore their respective solo careers.
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In saying that, £24 million is probably not that much for the band members – Harry Styles, Niall Horan, Louis Tomlinson, and Liam Payne.
In March 2016, The Sun reported that the band were facing an investigation by HM Revenue and Customs (HMRC) over the use of an alphabet scheme.
Now, the publication is reporting that 1D have been ordered to pay the hefty tax bill but the band have appealed the ruling.
“Their firm [1D Media] decided to use an alphabet scheme for the hundreds of millions of pounds they earned. It means shares are grouped into categories — such as A to J — and allows profits to be paid in the form of dividends at different rates,” a source told The Sun.
“However, while legal, HMRC inspectors have since decided to crack down and target them as potential measures of avoiding tax.
“…It means One Direction could now be set to pay back a huge sum to the taxman.”
Per The Sun, the lads made an easy £63 million ($115 million AUD) before tax in 2017 and their company – 1D Media – revealed profits of £30.6 million ($55 million AUD). In April 2016, after resigning as directors of 1D media, the four existing members reportedly collected a cool £14 million ($25 million AUD) each after selling just ten shares in the firm.
As the share classes were formed after Zayn Malik‘s departure from One Direction, it appears he is not involved in this pretty pricey drama.
The band or spokespersons for One Direction have not commented on the tax bill.
