A Lithuanian company linked to the U2 frontman Bono has agreed to pay €53,000 (£47,000) in back taxes and a fine following an investigation prompted by the Paradise Papers.
The Irish singer, whose real name is Paul Hewson, was a passive minority investor in a Malta-based company which bought a shopping centre in north-eastern Lithuanian via a holding company in the country called Nude Estates 2.
After Bono’s link to the Lithuanian firm emerged, a local tax expert who looked at its accounts claimed it may have fallen foul of local rules when it revalued the Aušra shopping centre following the economic downturn in 2010.
The revaluation created a €3m loss which the company then offset against its income, enabling it to avoid the 15% tax payable on profits.
However, following the Paradise Papers investigation, the tax office stepped in over concerns that this use of losses