U2 has become the latest rock band to set up some of its operations in Holland in order to cut its tax bill – a move which has drawn some criticism given frontman Bono’s campaign to end debt relief for developing countries.

The Irish band has followed on from the footsteps of the Rolling Stones, which relocated its umbrella financial company to Holland last month.

The tax rate on royalty earnings in the Netherlands is only a few per cent, while Ireland has recently brought in tax changes which have imposed a cap of €250,000 (£168,000) on tax-free incomes for artists resident in the republic.

The Guardian quoted Irish Labour party's finance spokeswoman, Joan Burton as saying: ‘Having listened to Bono on the necessity for the Irish government to give more money to Ireland Aid ... I am surprised that U2 are not prepared to contribute to the exchequer on a fair basis along with the bulk of Irish taxpayers.’