Despite the setback represented by their unsuccessful prosecution of Harry Redknapp, the crackdown by Revenue and Customs on football clubs is to continue. Football has acquired a reputation for late payment and involvement in tax avoidance schemes and two special units have been set up to deal with the game.
Despite the setback represented by their unsuccessful prosecution of Harry Redknapp, the crackdown by Revenue and Customs on football clubs is to continue. Football has acquired a reputation for late payment and involvement in tax avoidance schemes and two special units have been set up to deal with the game.
The Revenue has written to all 20 Premier League teams with a list of 181 questions about their finances. It is hoping to uncover information relating to perks given to players and the renumeration arrangements for foreign players. The Revenue also has a particular interest in benefit-in-kind payments and employee benefit trusts.
Historically the main problem was with ‘bungs’, cash payments supposedly made in brown paper bags. However, a bigger problem now is the number of foreign owned clubs with offshore accounts which are effectively beyond the reach of the tax authorities.