U2 tax policy in line with Government ‘philosophy’ - Bono

Bono has defended his band's decision to route some of its income through the Netherlands to avoid Irish tax, saying it is in line with the Government's "philosophy of tax competitiveness".

In an interview with The Observer newspaper Bono was asked whether it was hypocritical for him to hold the Government to account for its spending while going through “exhaustive efforts” to avoid the Irish Revenue.

The members of U2 moved a significant part of their multi-million euro business empire out of Ireland in 2006 to avail of a lower tax rate in the Netherlands. The move came after then Minister for Finance Brian Cowen introduced a cap of €250,000 on the tax-free incomes allowed to artists

Defending the decision over the weekend, the U2 frontman said, “it is not an intellectually rigorous position unless you understand that at the heart of the Irish economy has always been the philosophy of tax competitiveness.

“Tax competitiveness has taken our country out of poverty. People in the revenue accept that if you engage in that policy then some people are going to go out, and some people are coming in. It has been a successful policy.”

He added: “Tax competitiveness is why Ireland has stayed afloat. When the Germans tried to impose a different tax regime on the country in exchange for a bailout, the Taoiseach said they would rather not have the bailout. So U2 is in total harmony with our government’s philosophy.”