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Wednesday
Jun232010

More Football Clubs Start Taking Advantage of Being Based Offshore

I have been reading the papers and watching the news a lot in recent months, and one thing I have noticed is that stories about non doms and tax haven status have been cropping up more frequently than ever.  Perhaps the General Election and the various policies being touted by each party had a lot to do with that.

But now an investigation has been performed which has revealed shocking statistics about Premier League football clubs.  According to the report nearly 75% of all clubs in the Premier League are based in tax havens, rather than being based in this country.

I would have suspected some of them were to take advantage of the tax benefits.  But I was amazed to see the figure was so high.  Apparently it has shocked HMRC as well, because they have announced they are looking into the situation to see what they can do about it.  If a club is owned by foreign interests that is one thing.  But some are British owned and this could be where the problems begin.

It would certainly appear that the club owners are at loggerheads with HMRC over several aspects of the tax haven status.  Payments have been questioned by HMRC on a regular basis, as they want to be sure everything that should be taxed is.  In addition the clubs are trying to get the best value for money by investing in teams without having to pay huge amounts of tax on income in the process.

Tax laws are always quite complicated, which is why the team here at St Matthew always advocate using a professional accountant.  If you need such services, contact us now for advice.

 



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