SINGER Cheryl Cole, who revealed recently she had married her French partner Jean-Bernard Fernandez-Versini after a three-month romance, has denied using an Irish company to help avoid paying up to £200,000 in UK tax.
The singer’s spokesman claimed she had set up the company Tara Entertainment Ltd in 2001 to manage her international earnings because her accountant is Irish, not as a way of paying less company tax.
Tara and its UK-based parent company CC Entertainment International were put into voluntary liquidation in the last two months, which triggered speculation that the singer wanted to avoid being accused of tax avoidance.
Cole’s publicist Sundraj Sreenivasan said the move was simply because her Alan McEvoy had moved to London, adding that the star had been introduced to Mr McEvoy by Girls Aloud’s former manager Louis Walsh.
In a statement he said: “Cheryl has used the same accountant in Ireland for 13 years. The accountant was recommended by Louis Walsh, who at the time managed her as part of Girls Aloud. Her accountant has recently set up an office in London so Cheryl’s Irish company has been dissolved.”
Though she did nothing illegal by closing the company, the final accounts for Tara reveal assets of£2.5 million at the end of 2012, which would suggest Cole had conducted at least this sum through the company.
Were this to be the case, the singer would have avoided paying some £200,000 in tax that would have been owed in Britain – the difference between Ireland’s 12.5 per cent corporation tax rate compared to the 21 per cent rate in Britain.