moomba said:
Re the tax, I read a week or so ago that clubs are avoiding this tax bills for players by paying wages as interest free loans. Not sure of the truth of it, whether it's possible legally or whether we are involved in any way. But there are a few ways of avoiding a big tax bill (didn't Arsenal pay their squad offshore for a long while?)
Yes I read that...I'm not sure that the interest free loan would work as the recipient would or should still be taxed as he is receiving a benefit in kind (ie no loan interest). I've heard of other ways...one was to do with intellectual property/ image rights. A player registers himself and his image rights somewhere where the tax rate is low and the club concerned then agrees to pay a high premium for his image rights etc and a lower wage. In effect, big sums go to where the image right is held and the rest is paid as a wage in the UK (and tax is taken).
Another one is an employment contract type thing where the player actually signs a contract with a company outside of the UK (again in a country where the tax rate is low)...that company then invoices the football club for the player's services. The club pays the money to the company (no tax has to be deducted) and the company pays the player a basic wage in the UK where he pays tax on what he receives. The difference is held in the company and taken out when the player is outside of the UK.
These sort of things work well for foreign players or UK players abroad. It's been some time since I came across these things (many many years ago) but that's the sort of thing that used to be done. And from what I know it doesn't always have to involve offshore accounts etc...for instance I think Russia has some of the lowest rates of tax around at the moment - I seem to remember 13% but could be wrong!