Ryder Cup/maybe affected by new tax rules

Regarding all the press coverage today on the subject of TAX on events in the UK - The warnings have been there for a while. This is the editors letter from SWING IMAGE MAGAZINE - SEAN HARRISON back in March

Could new tax rules drive tour players away from golf events in Britain?

The intention of HM Revenue and Customs to calculate tax on a proportion of visiting sportspersons’ global earnings could prove disastrous for golf and other sports events in Britain.

Some of the world’s top golfers could change their tour schedules to avoid UK events because of taxes imposed on their worldwide sponsorship deals.

Discouraging the world’s leading golfers and other sportsmen and sportswomen from competing in UK future events has to be a major cause for concern. Surely the UK needs to entice the world’s top players both for worldwide TV audiences and to provide the best possible entertainment for fans attending events, not forgetting the wealth big tournaments bring to the UK.

HM Revenue and Customs (HMRC) will now require visiting competitors to complete a UK tax form declaring their appearance fees, winnings and global endorsement income. The new tax rules imposed by HMRC, will target endorsements and sponsors performance-related bonuses. So, the size of endorsement taxes could now far exceed the appearance fees and winnings that golfers earn while competing in the UK.

Another concern must be for the events entered prior to our Championship, e.g. Loch Lomond the week before The Open, in favour of tournaments based in countries that do not tax endorsement income of visiting players.

It is not just golf that will be affected by these harsh tax rules. There are concerns that tennis players will avoid traditional pre-Wimbledon tournaments such as Eastbourne, and the Queen’s Club as they could pay 50% tax on a proportion of their sponsorship deals. How many big names will boycott Britain's sports calender?

Let’s wait and see what happens, as the entry list for golf and other events in Britain may look quite desolate in the future and judging by the reaction from others recently, the concern seems to be widespread.

Sean Harrison

This is another reason why this country is going backwards , the short sitedness of goverment when you realise the revenue these people generate by coming here. The Ryder cup alone generates before, during and after the event more than a billion and a half pounds.

Did you see Adam's article today ?

Tiger in Ryder Cup rejection 

Perhaps that's why he played himself out of it the weekend.

http://www.golfshake.com/news/view/1760/Tiger_in_Ryder_Cup_rejection.html

Just a review of current media attention around Tax issues, Tiger and Ryder Cup.

Gary, very interesting topic and definitely not just associated to Golf.  Look at all the F1 guys based away from the UK.  You can kind of see the issue when they start paying 40% tax but the rest of us have to pay tax, albeit very few proportionally at 40%.

Some won't be so bad but the Tiger situation having played so few events could be an interesting one. 

How it's solved is another matter entirely! 

That's it I'm moving to Monaco, any one else  I'm gutted I may have to give up 40% of my sponsored team shirt supplied by a local car trader and yes I know 60% of one of my shirts is still a lot of material

Gary, would guess all down to PR/spin or whatever you want to call it.  Would think the marketing/management teams decide to stay quiet when a possible negative story rather than shout about it.  

The Bolt story didn't get mass coverage back in July.

Interestingly though the golf coverage is picking up with a Casey article released within the last few hours on this exact topic.  Guess with the final major and cut off for Ryder Cup teams imminent it starts getting more coverage for golf in the news.

Unfortunately this is old news, this old chestnut has been dragged up as a proposal (mainly by whichever press is against the incumbent government at the time) for at least 10 years - bit like the old EU banana straightness anecdote.  The original proposal does have some basis in truth however, but it was put forward mainly to cover sportsmen/women with long term residency here avoiding tax - primarily footballers.  The sportsmen would only be paid a minimum(ish) wage for HMRC purposes but receive a much larger income in a more tax relaxed country via sponsorship and endorsements.  As far as I know it has had minimal success - the UK nationals in F1 (and quite a few musicians) do it to avoid tax and have done for many years and is a very different kettle of fish to this entirely.

I thought this was to do with footballers receiving image rights monies tax free?

Apparently rooney gets nearly a million from Man Utd for his image rights but there not classed as earnings?

It's mainly aimed at the long term foreign players, UK nationals have to other avoidance tactics - a trifling drop in the ocean compared to the major tax dodgers.  Far better to whip the unwashed masses into a frenzy about nothing to avoid scrutiny of their own affairs (sorry - political rant - I'll get my coat)