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Carr admits 'I've made a terrible error of judgement'

Comedian Jimmy Carr released a statement on his Twitter page over his tax arrangements. Photo: PA Wire

Comedian Jimmy Carr has admitted he made a "terrible error of judgement" over his tax arrangements.

In a statement released on his Twitter page Carr said:

ITV News reporter Richard Pallot has reported that the scheme Carr has opted out of, channels earnings through a Jersey-based company K2.

On Wednesday the Prime Minister David Cameron told ITV News Carr's tax arrangements were "morally wrong" and said the Government would crack down on "these very dodgy schemes" used by high earners to deprive the public purse of an estimated £4.5 billion per year.

His comments came after a Times (£) investigation identified him as one of many celebrities using an offshore account to avoid paying tax.

It was claimed the comedian used an offshore account so that he only paid around 1% tax.

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