Thousands of rich people in the UK are paying 1% income tax using "below the raider" accounting methods, according to an investigation by The Times.
The paper said the methods cost the country billions of pounds in lost tax revenue.
The paper said its investigation began with the exposure of K2, a Jersey-based scheme that shelters £168m a year from the taxman. Comedian Jimmy Carr is understood to be the scheme's largest beneficiary.
K2 is one of a number of scheme identified by The Times that it says are "flourishing despot government promises to crack down on the practice".
It said individual tax avoidance was a bigger problem that corporate tax planning, which has been highlighted in the media
The report added individual tax avoidance costs the economy £4.5bn out of £7bn lost in total every year, according to HM Revenue & Customs.
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