Cameron accuses Carr of 'morally wrong' tax avoidance

British Prime Minister David Cameron today branded comedian Jimmy Carr “morally wrong” for seeking to avoid taxes.

Media reports of Carr’s tax arrangements suggest he is undertaking “straightforward tax avoidance”, said Cameron.

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%.

Cameron said it was unfair on the people who pay to watch the comic perform that he is not paying his taxes in the same way that they do.

Speaking to ITV News during a round of TV interviews during his trip to Mexico, the PM said: “I think some of these schemes – and I think particularly of the Jimmy Carr scheme – I have had time to read about and I just think this is completely wrong.

“People work hard, they pay their taxes, they save up to go to one of his shows. They buy the tickets. He is taking the money from those tickets and he, as far as I can see, is putting all of that into some very dodgy tax avoiding schemes.

“That is wrong. There is nothing wrong with people planning their tax affairs to invest in their pension and plan for their retirement – that sort of tax management is fine.

“But some of these schemes we have seen are quite frankly morally wrong.

“The government is acting by looking at a general anti-avoidance law but we do need to make progress on this.

“It is not fair on hard working people who do the right thing and pay their taxes to see these sorts of scams taking place.”

Earlier, the comedian, who was born of Irish parents, broke his silence over the claims, insisting: "I pay what I have to and not a penny more."

Carr, who has famously lampooned fat cat bankers, reportedly protects some £3.3m (€4.09m) 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.

He spoke out last night amid claims that members of Take That - Gary Barlow, Howard Donald, Mark Owen and their manager Jonathan Wild - invested at least £26m (€32.3m) in another scheme run by Icebreaker Management Services.

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.

It came after he appeared to make light of the furore surrounding his payments to HM Revenue and Customs (HMRC).

He asked: "Got through the papers? I haven't really been through the papers today. The Murdochs are after me..."

Carr is said to be one of more than 1,000 beneficiaries who shelter some £168m (€208.7m) from the taxman each year using K2.