One Direction Faced With Biggest Tax Bill In Pop History

One Direction has reportedly been handed a staggering $45 million tax bill, two years after their hiatus. 

The Sun reports that the group, consisting of Harry Styles, Niall Horan, Liam Payne and Louis Tomlinson, are facing an investigation by HM Revenue & Customs over a controversial 'alphabeat scheme'. 

"Their firm decided to use an alphabet scheme for the hundreds of millions of pounds they earned. It means shares are grouped into categories - such as A to J - and allows profits to be paid in the form of dividends at different rates," The Sun revealed. "HMRC inspectors have since decided to crack down and target them as potential measures of avoiding tax."

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The former boy band made a whopping £63million (AUD$115 million) before tax, while their company made profits of £30.6million (AUD$56 million). 

"Being one of the world’s most successful music acts unfortunately can come at a hefty price," a source says. "It means One Direction could now be set to pay back a huge sum to the taxman."

According to The Sun and MailOnline, One Direction's Harry Styles, Niall Horan, Liam Payne and Louis Tomlinson all resigned as directors of 1D Media in April 2016, cashing in 10 of their firm's shares each to make £14million (AUD$25 million) each.

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While Zayn Malik was also formerly a member, there is no suggestion that he engaged in tax evasion, as the band had set up the share classes following his departure.

While such a huge sum would send us laypeople into bankruptcy, it's predicted that it won't affect the musicians' fortunes too severely. 

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