Peter Andre is involved in a quarter of a million pound dispute with HMRC after his company went bust.
The star's firm PJA Promotions Limited, originally called the Peter Andre Fan Club Limited, was liquidated this week.
It once had assets worth close to £500,000 but it now owes £262,295 including £254,703 to HMRC.
Andre is disputing the amount and is embroiled in a legal row with the taxman.
Sources added the company going bust was a result of the pandemic and Peter's international touring schedule drying up as a result.
The source said: "No one was allowed to work during the pandemic and like millions of people during this time, people lost companies and jobs.
"Thankfully his international work has now come back. Peter has paid millions of pounds worth of tax over his career and is working with HMRC to resolve this dispute."
The singer, 50, set up the company when his pop career took off after hit single Mysterious Girl reached No2 in the charts in 1996. Andre is listed as the sole director of the company. Meanwhile, Andre this week revealed his reasons for not going on the South Africa version of I'm A Celebrity.
He appeared on the ITV show in 2004, when he wrote Insania and met future wife Katie Price. Andre returned in 2011 for a special visit to the camp, which included current contestant Fatima Whitbread.
He said: "You experience things that are amazing, but I don't think I could go back."
When asked what he thought of the current series, Andre said: "I haven't seen it, but I think it's a great line-up. They've got some good people on there."
Andre married NHS doctor Emily, 33, in a lavish ceremony in Exeter in 2015.
The couple share two children Amelia, nine, and Theo, six. Emily is also stepmum to Peter's two children Junior, 17, and Princess, 15, from his marriage to Price.
