Premier League stars are among those being looked into
A record 329 professional footballers are reportedly under investigation for suspected tax avoidance, while one Premier League club is being investigated by the FA and HMRC for allegedly making offshore payments to agents.
As reported by The Sun, included in the 329 players being investigated are a number of Premier League stars, with 31 clubs and 91 agents also being looked into.
Last season’s figure is the highest number of investigations since HMRC began keeping records, and has risen from 93 in the previous campaign (2020/21). It comes as HMRC continue to step up its work in combatting tax avoidance within sport.
The report adds that the body has appointed a team of fraud experts to liaise with the FA’s Football Compliance Project, who will attempt to battle tax avoidance through image rights deals – where clubs pay players more to be able to use their image in advertising and endorsement campaigns.
It is thought that the extra payments are often paid to a firm the player sets up, which means they are subject to 19 per cent Corporation Tax instead of the 45 per cent high-earner Income Tax.
329 professional footballers are under investigation for suspected tax avoidance.
Premier League stars are among those being looked into — the most since HMRC started keeping figures. [Sun]
— That's Football! (@ThatsFootballTV) July 9, 2022
HMRC ‘collected £560million in additional football-related tax since 2015’
Tax expert Elliott Buss, a partner at accountancy group UHY Hacker Young, told The Sun: “The Football Compliance Project linking up with HMRC’s elite fraud unit means the tax authority is very concerned about the significant amounts of unpaid tax in the sport.
“HMRC sees football as an industry where millions of pounds in tax can very easily go unpaid. It is determined not to let that happen.”
HMRC – who are reportedly keen for commission paid between clubs and agents to be scrapped – report that it has collected £560million in additional football-related tax since 2015.
Premier League club ‘using foreign ‘sister’ clubs to to disguise money’
The Sun also report that a ‘leading’ Premier League side has been using its foreign ‘sister’ clubs to to disguise money paid for deals for new signings to their English squads.
It is claimed that the club have been paying agents fees from their European satellite teams, which has seen money paid to agencies, rather than part of genuine transfer deals in the UK.
Moreover, as many as 16 deals are reportedly being scrutinised to verify money trails involved in transfers that had been flagged.
The FA have the power to fine the club
While the FA are leading the investigation, HMRC are thought to be keeping an eye on the situation in the instance that the findings present any wrong-doing from the club.
The FA have the power to fine the club and the punishment could be as big as seven figures once the case is closed.
The report adds that the aforementioned club is said to have disguised the fees, which has allowed them to lower their Financial Fair Play and agent tax bills in the UK.
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