It comes as no surprise that the following story has appeared again today. It looks like it is a story that will run and run. As other countries create tax free havens for sports stars our tax laws start to look out of date. Or do they? Should we be always chasing the tax free states in their quest for short term gain and profile. Perhaps as usual there is a compromise somewhere in the middle. I know the Treasury will not want to open up this issue too lightly. Where do we stop. How many exemptions for ‘visitors’ do we create.
To be fair we do need to do something. The rules as they stand do ‘over penalise’ visiting sports stars and we have created the special exemption for the 2012 Olympics. It was part of the 2012 Olympics Act I sat on…so it is possible.
I know the new Coalition government are as keen as the previous sports minister to sort this out…but the Treasury ahs even more say these days – so we will see how quickly this is resolved. I would love to be at those meetings again today!
The story….
The European Tour and Paul Casey have become the latest names to hit out at the UK tax rules, saying that they could deter the world’s top golfers from competing in the Ryder Cup at Celtic Manor in October.
Foreign stars are taxed both on their winnings from events in Britain and a portion of other income that is connected to their performance in the UK, including sponsorship and endorsements.
It has been reported that Tiger Woods will face a potential £1m bill if he is to play in the Ryder Cup.
Jamaican sprinter
Usain Bolt pulled out of the Grand Prix at Crystal Palace this weekend as he would end up losing money if he competed.
The tax situation is a big issue for the Ryder Cup because players receive no prize money and Mitchell Platts, European Tour director of public relations corporate affairs, commented: ‘These tax rules are discouraging leading sportsmen and sportswomen from competing in Britain.’
‘Our aim is to attract the best players to provide the best entertainment for our audiences in the UK. This tax rule is seriously hampering our efforts.’
Golfer Casey, who now lives in Arizona, said: ‘…I fear it will keep people away. I do think about it, I’m not a huge fan of paying through the nose for something. The Ryder Cup does seem a mad one as we don’t get paid. Yes, it would cause a stink.’
The rule has been waived for the London 2012 Olympics and the European Tour could ask for a similar relinquish on the rules in October.
View from the Margins 