Post by Macmoish on Sept 20, 2011 13:57:25 GMT
Sky
Taxman Targets Footie Transfer Loopholes *
Ian Dovaston, sports news correspondent
Millionaire players, their agents and top-flight clubs are being targeted in a new crackdown on tax avoidance during football transfers, Sky News can reveal.
Specialist teams within Her Majesty's Revenue and Customs (HMRC) are pursuing high earners - and Sky News has been told "footballers will fall into that".
Following a summer transfer window in which almost £500m changed hands, authorities are looking to close loopholes that allow currently legitimate tax dodges.
One recent example of alleged avoidance has emerged over Joey Barton's reported £80,000-a-week move from Newcastle United to Queens Park Rangers.
And Sky News understands the Football Association (FA) is looking closely at the deal.
We are committed to cracking down (on footballer players' transfer loopholes); we've a duty to look at that.
HMRC spokesman
The player's agent, Willie McKay, ultimately acted for QPR, despite travelling to London as Barton's representative.
A club paying a player's agent is seen as a perk on which the player would pay tax.
However, a currently legitimate way around the rules is for the agent to switch to representing the buying club. That way the player can avoid the benefit-in-kind tax.
While it seems the FA has no problem with a player's agent acting for the buying club in the same deal, the taxman is ready to remove the loophole.
Typically a player's agent will charge around 5% of a client's earnings. It is reported Mr McKay may have received a payment from QPR of around £1.3m.
Premier League Transfers
:: £485m spent during the 2011 summer transfer window
:: Around £100m spent on transfers on deadline day
:: The £38m transfer of Sergio Aguero (pictured) was the summer's biggest
Source: Deloitte
Manchester City's Sergio Aguero
A spokesman told Sky News: "HMRC is aware of a potential tax issue concerning the payment of agent fees and are taking steps to ensure the tax rules are respected.
"The Government has made £917m available to HMRC to ensure that tax rules are adhered to across the board.
"We cannot comment on individual cases, however, in general terms when a third party pays a fee to an agent acting on behalf of an employee, the fee may count as part of an employee’s taxable earnings and so be liable to tax."
When Sky News contacted Mr McKay, he confirmed he had represented QPR, adding: "There's nothing to clear up."
A spokesman for the FA told Sky News it "will co-operate fully with the authorities where required to do so".
HMRC has not confirmed if its investigators are looking into the Barton move, but it would seem highly likely they have taken an interest.
Wembley stadium
The FA, based at Wembley Stadium, says it will co-operate with the changes
It did confirm it can investigate deals going back up to 20 years where there is evidence of a criminal tax issue, or four years for non-criminal matters.
Highly-trained investigators working within high net worth and affluence units can call upon contracts and bank statements.
Some found to have avoided tax will be asked to pay what is due, while others may ultimately be prosecuted and HMRC can devise legislation to combat with tax avoidance.
"We are committed to cracking down; we've a duty to look at that," said a spokesman.
Speaking on Sunday at the Liberal Democrat conference in Liverpool, Treasury chief secretary Danny Alexander called tax evasion and avoidance "morally indefensible".
It is reported to cost the Treasury £14bn a year.
news.sky.com/home/uk-news/article/16073614
Taxman Targets Footie Transfer Loopholes *
Ian Dovaston, sports news correspondent
Millionaire players, their agents and top-flight clubs are being targeted in a new crackdown on tax avoidance during football transfers, Sky News can reveal.
Specialist teams within Her Majesty's Revenue and Customs (HMRC) are pursuing high earners - and Sky News has been told "footballers will fall into that".
Following a summer transfer window in which almost £500m changed hands, authorities are looking to close loopholes that allow currently legitimate tax dodges.
One recent example of alleged avoidance has emerged over Joey Barton's reported £80,000-a-week move from Newcastle United to Queens Park Rangers.
And Sky News understands the Football Association (FA) is looking closely at the deal.
We are committed to cracking down (on footballer players' transfer loopholes); we've a duty to look at that.
HMRC spokesman
The player's agent, Willie McKay, ultimately acted for QPR, despite travelling to London as Barton's representative.
A club paying a player's agent is seen as a perk on which the player would pay tax.
However, a currently legitimate way around the rules is for the agent to switch to representing the buying club. That way the player can avoid the benefit-in-kind tax.
While it seems the FA has no problem with a player's agent acting for the buying club in the same deal, the taxman is ready to remove the loophole.
Typically a player's agent will charge around 5% of a client's earnings. It is reported Mr McKay may have received a payment from QPR of around £1.3m.
Premier League Transfers
:: £485m spent during the 2011 summer transfer window
:: Around £100m spent on transfers on deadline day
:: The £38m transfer of Sergio Aguero (pictured) was the summer's biggest
Source: Deloitte
Manchester City's Sergio Aguero
A spokesman told Sky News: "HMRC is aware of a potential tax issue concerning the payment of agent fees and are taking steps to ensure the tax rules are respected.
"The Government has made £917m available to HMRC to ensure that tax rules are adhered to across the board.
"We cannot comment on individual cases, however, in general terms when a third party pays a fee to an agent acting on behalf of an employee, the fee may count as part of an employee’s taxable earnings and so be liable to tax."
When Sky News contacted Mr McKay, he confirmed he had represented QPR, adding: "There's nothing to clear up."
A spokesman for the FA told Sky News it "will co-operate fully with the authorities where required to do so".
HMRC has not confirmed if its investigators are looking into the Barton move, but it would seem highly likely they have taken an interest.
Wembley stadium
The FA, based at Wembley Stadium, says it will co-operate with the changes
It did confirm it can investigate deals going back up to 20 years where there is evidence of a criminal tax issue, or four years for non-criminal matters.
Highly-trained investigators working within high net worth and affluence units can call upon contracts and bank statements.
Some found to have avoided tax will be asked to pay what is due, while others may ultimately be prosecuted and HMRC can devise legislation to combat with tax avoidance.
"We are committed to cracking down; we've a duty to look at that," said a spokesman.
Speaking on Sunday at the Liberal Democrat conference in Liverpool, Treasury chief secretary Danny Alexander called tax evasion and avoidance "morally indefensible".
It is reported to cost the Treasury £14bn a year.
news.sky.com/home/uk-news/article/16073614
