Posted on 08/01/2006 4:57:08 PM PDT by wagglebee
The Rolling Stones have paid just 1.6 per cent tax on their earnings of £242million over the past 20 years, it has emerged.
Documents published in Holland show that Sir Mick Jagger, Charlie Watts and Keith Richards used offshore trusts and companies to ensure tax breaks.
Of the fortune they have accumulated since 1986 for royalties, they have paid just £3.9 million in taxes.
The revelation emerged after the three set up a will to ensure that their beneficiaries do not end up squabbling over their money when they die.
The band appear to have been spurred into action after Richards had brain surgery following a fall from a coconut tree this year. Sabine Schuttgens, a lawyer who is involved in setting up the Stones' trusts, said: "The foundations are to make sure that after the death of the rock stars, there would be no argument among their heirs."
News of their money management emerged when 63-year-old vocalist Sir Mick, drummer Watts, 65, and 62-year-old guitarist Richards decided to hand over their estates to two foundations in Holland.
Their fortunes have been secretly invested in the country for the past 35 years. The trusts will control the rights to the Stones' music, performances, merchandise and films. Under Dutch law, certain information must be made public - allowingdetails of their extraordinary tax break to emerge.
The band started banking in Holland in 1972 because, reportedly they did not trust British finance houses.
Under Dutch law, there is no direct tax on royalties. They have been tax exiles ever since - meaning they cannot make Britain their main home.
Their holding company, Promogroup, has offices in both Holland and the Caribbean, allowing them to reduce tax liabilities.
As a latecomer to the band, Ronnie Wood, 59 - who replaced Brian Jones in 1969 - does not qualify to his assets managed by the same group as the others.
Watts is said to be worth £ 80million, and as main songwriters, Richards is worth £185million while Sir Mick's fortune is as much as £205million.
There is no record of Bill Wyman, 69, who left the band in 1992, in the registration for the trust.
U2 were obviously so impressed by the Stones's fiscal arrangements that the Irish rock band now share the group's Dutch financial director, Jan Favie.
The Stones were formed in 1962 and their debut single, Come On, arrived in the charts a year later.
Although they regularly bring out new albums, they have made most of their money from touring. Their present tour, A Bigger Bang, which was in Amsterdam on Monday night and will arrive in Britain later this month, is predicted to have an estimated turnover of £80million.
There were fears it would not go ahead after Richards injured himself while on holiday in Fiji in April. The guitarist had to have extensive brain surgery after developing a blood clot.
Sir Mick, Watts and Richards disappointed thousands of fans by postponing the first 15 dates of the European leg of the tour.
But Richards recovered quickly allowing the band to perform at the San Siro stadium in Italy.
They may be old but not stupid it appears.
At least they weren't deducting used briefs as charitable donations.
And it looks like Bono and U2 are using the same tax experts.
All profits will of course go to cure Aids in Africa.
Ahem.
Didn't Mick graduate from the London School of Economics or some such?
Where's the liberal outrage!?
The rich not paying their fair share???
ROCK 'N ROLL did change the world...
of personal finance and trust/will construction!
Yes, but he also was unwittingly enrolled in Being Screwed By Allen Klein 101, where he received a more hands on education about the Stones' money...or lack there of.
Can I hire their accountant?
I believe that he dropped out when the Stones were starting to hit their stride.My understanding is that back then admission to the LSE was the equivalent of admission to Harvard or Oxford.In other words,Sir Mick is *no dope*.
Another Hearty GOOD for THEM!
What is that in french? How dare you bring that stench in here.
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