The 'Rule The World' musicians along with manager Jonathan Wild are among 1,000 people who contributed £480 million to 62 music industry partnerships that Her Majesty's Revenue & Customs claim act as tax shelters for wealthy individuals, according to The Times.
Lawyers for the bandmates involved insisted that they thought the investments were legitimate enterprises and not tax avoidance schemes, and said that they all pay "significant tax". There is also no suggestion of any illegality.
HMRC is attempting to shut down the partnerships, overseen by a firm called Icebreaker Management Services, for what it claims is a tax loophole.
"We do not accept that the Icebreaker tax schemes have the tax effects their promoters claim," a HMRC spokesman said.
Robbie Williams and Jason Orange are not involved in the investments.
The news follows yesterday's Times report alleging that Jimmy Carr puts £3.3 million a year into an offshore shelter as part of a tax avoidance scheme used by 1,100 rich individuals.
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