April 11 – Scores of English professional footballers are facing huge fines for investing in a tax avoidance scheme, according to the country’s Daily Mirror newspaper.
Footballers have come under increasing tax authority scrutiny across Europe in recent months, with spate of La Liga players have found themselves in trouble after trying to save tax – predominantly via image rights payments being taken offshore. The English-based stars could suffer similar prosecutions after handing over cash to financial advisers Kingsbridge to invest in film projects.
The players, who have not been identified, reportedly come from a string of high-ranking clubs including Manchester United and Liverpool. Insideworldfootball has previously reported on the depth of the issues that as many as 1,000 former players across England could face (see UK footballers from Rooney to Durie hung out to dry in film fund tax dodges).
The tax breaks that originally allowed the scheme to operate have now been scrapped by Britain’s tax authority, known as Her Majesty’s Revenue and Customs, while Kingsbridge went into liquidation in 2015.
Almost 130 players face a bill of £250 million if their involvement in the scheme is proven to be illegal, reports suggest.
Critics claim the players knew they were avoiding tax but experts claim the stars had little or no idea how their money was being used.
A HMRC statement said: “Most tax avoidance schemes don’t work. People can end up paying more than they were trying to avoid.”
Further reading: Legal comment: film fund footballer investors should beware the hungry taxman
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