Carr tax arrangement branded 'immoral'

British prime minister David Cameron today branded the tax arrangements of comedian Jimmy Carr as “morally wrong”.

British prime minister David Cameron today branded the tax arrangements of comedian Jimmy Carr as “morally wrong”.

He made the comment to ITV News after Mr Carr broke his silence over claims that he dodged tax, insisting: "I pay what I have to and not a penny more."

The funnyman is said to have used an aggressive — but legal — tax-avoidance scheme which enables members to pay income tax rates as low as 1 per cent.

Mr Carr, who has famously lampooned fat cat bankers, reportedly protects some £3.3 million (€4.09 million) a year by channelling cash through Jersey-based company K2, which then returns the money in the form of a loan. This is not subject to income tax.

Mr Carr was confronted over his own financial arrangements during a show in Tunbridge Wells, in Kent.

Challenged by a member of the audience who told him "You don't pay tax", he replied: "I pay what I have to and not a penny more", The Times reported.

PA