He’s accused of “misrepresenting” the funding needed for a 2011 solo record.
Bob Geldof has been faced with fresh claims of tax avoidance and fraud that relate to the funding of his 2011 solo album.
‘How to Compose Popular Songs That Will Sell’ failed to live up to its bold title when it reached the 89th spot in the album charts upon release in February 2011.
But the album could also have huge legal consequences for the Boomtown Rats singer, after The Sunday Times published claims that Geldof had “misrepresented” the record’s funding and provided invoices that were “five times more costs than were needed”.
Lochurst LLP, a company based in Great Yarmouth, has filed High Court documents against Icebreaker Management – which played a leading role in securing funding for Geldof’s record.
The management firm, which was dissolved last month, previously faced criticism in 2014 after HM Revenue and Customs successfully argued that an investment service offered by the firm was actually a tax avoidance scheme.
It led to claims of tax avoidance being faced by Take That‘s Gary Barlow, Mark Owen and Howard Donald – who had invested £66 million into the scheme with their manager Jonathan Wild.
Speaking in 2014, High Court judge Colin Bishopp said: “No serious or even moderately sophisticated investor, genuinely seeking a profit… would rationally have chosen an Icebreaker partnership.
“The predominant purpose of entering the scheme was ‘to achieve a tax saving’.”
The claims were denied by Geldof in a statement issued by his accountant Patrick Savage.
“He and his production company vehemently deny any allegation of fraud, misrepresentation or wrongdoing,” said Savage.