The band U2, according to Forbes Magazine, are the richest band in the world, having made $195 million last year. The second richest is Jon Bon Jovi, who made a measly $125 million comparatively.
However, all’s not rosy moneywise for U2. Or more aptly, all’s not rosy with their fans who are accusing them of tax evasion and of the high crime of hypocrisy since the band advocates for the poor people of the world.
All members of U2 were raised in Dublin, but moved U2 Ltd, the company into which its royalties are paid, to the Netherlands for tax reasons in 2006 after Ireland changed its tax structure. Between 1969-2006 artists in Ireland paid no taxes under laws brought in under Prime Minister Charles Haughey. Haughey was later accused of embezzlement. Now artists are required to pay tax on 250,000 euro or above ($365,000) so U2 have moved their company to Holland where the tax rate is lower than that of Ireland’s.
The group defends its action saying it’s merely being tax-efficient, just like any other business. Guitarist The Edge is more vocal about the criticism. In a letter to The Baltimore Sun, he states, ‘For the record, U2 and the individual band members have a totally clean record with every jurisdiction to which they are required to pay tax and have never been and will never be involved in tax evasion.’
Of course U2 aren’t the first or only band to leave their country to avoid higher tax rates. The Rolling Stones fled England in the early 1970s and many others have followed suit. In fact Stones’ guitarist Ronnie wood was one of several celebrities who bought homes in Ireland during the lower tax regime. But singer Bono has come under harsher attack because of his public support of eliminating world poverty.
For more info:
The Edge Denies Accusations of U2 Tax Evasion
Here’s Simon Maroney’s letter, to which Edge was responding.
