Football clubs could face high price for stars’ tax affairs

AFP

9:54 PM | October 27, 2017

Premier League clubs are at risk of being demoted and prosecuted under the new Criminal Finance Act, a city company in the city told AFP.

Under the new law, which came into force on September 30, any company, including football clubs, can be held liable for employees or agents doing transactions if tax avoidance is an issue.

The new bill puts the club firmly responsible for due diligence on players and agents, says Tom Shave, a business three partner at Smith & Williamson, an accounting and investment management and tax group.

"It's already getting worse as the case gets closer to the jury. It's faint to be considered a tax evasion promoter in the current environment," AFP said in an interview at the company's headquarters.

"It depends on what the English Premier League looks like if there is a criminal charge in relation to your activity.

"This criminal prosecution for tax evasion still needs to be tested when it just came in, but I would think it would affect the club if such a case goes on."

Smith & Williamson's partner Peter Fairchild has a top list of football players as clients, and the EPL says that if one of its members is found guilty of promoting tax evasion, it can have a very faint view.

"The Premier League will want to maintain its reputation among fans and sponsors. We have seen point deductions where clubs can enter the administration and draw similarities."

"The club in question did not plan for this, so all of a sudden the cash payments were put on hold, the cash flow stalled, and the players had to pay weekly."

-& # 39; no shortcuts & # 39;-

Fairchild said many clubs don't seem to recognize that they could yet be hit by the bill.

"The criminal element of the bill is seriously scary," he said.

“I was a bit surprised because there were no more inquiries.

"But there's no shortcut. The tax authorities will come and ask their questions. If you don't have a strong defense, the weight of the law will be used against you."

Fairchild sees the upcoming transfer period in January becoming more intense and intense as the new bill goes into effect.

"I don't want to be told that I've had a hard time on January 31, or I've taken the time to follow the checklist on the players they're targeting to get the proper steps for clubs trying to close the deal."

"The only thing the Premier League club wants to fight for survival is to buy an important player and maintain their EPL status.

"Prepared clubs will receive major questions like & # 39; Did this due diligence? & # 39;

"They will talk to outside parties and potentially hire additional staff. Clubs that don't take it seriously can get a HMRC (Her Majesty & # 39; s Revenue and Customs) survey in 1-2 years.

"If that investigation finds a problem, it can be imposed with an infinite fine."

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Source Link : https://nation.com.pk/27-Oct-2017/football-clubs-could-face-high-price-for-stars-tax-affairs

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