[url=http://www.guardian.co.uk/business/2009/mar/23/gordon-brown-g20-tax-havensFull story[/url



It’s no secret that professional clubs in various sports use (or previously used) offshore accounts; rugby league is no exception. An example of such usage is when a sports club recruits an overseas player, a significant portion of their salary goes into an ‘offshore’ account, which they recieve at the end of their contract as a lump sum. No doubt part of the attraction for overseas players to play abroad, in a competition perceived to be inferior. It also provides security for the club, knowing that if the player wants away early, he won’t receive said lump sum.



Should rugby league, therefore, be concerned about Brown’s plans?

Ofshoring accounts is not a way to avoid paying tax



Tax is ALWAYS paid somewhere along the line.



It can, in certain circumstances, be a more efficient and completely legal way to maximise returns for higher rate tax payers.



This is, imo a smoke screen from Brown.

I was under the impression that these players were in part paid for their image rights which avoids PAYE!!

As has been said, tax is not avoidable, they will always pay some, somewhere.



Now, if Gordon wants to start with his mates in the Lords, and on then to boards of big business, and get them payig the same tax as everyone else then I'll happily start to declare my income differently, until such a point, so long as my accountant saves me more tax than his fees, I'll keep it "efficient".

You are wrong, you know, although its gradually getting harder. Its usually down to the question of residence. As someone said later, more often than not though you get to pay local tax at a far lower rate than in your own jurisdiction.

Still income in the hands of the recipient, and still taxable. Avoids NIC, I assume? And the biggest potential benefit to a club is that a player can receive income from a source that (if structured right) falls outside the salary cap.

This is under review. I think with a southern IR office (posibly because it was first looked at in RU).



If clubs have paid players 'through image rights' they are going to kop it. If they have made a habit of it with some big contracts some clubs may have problems paying the IR.

So they pay tax then, meaning I am right.



And given that players will be UK domiciled they will be paying UK tax, just not PAYE.

What happens when the (usually overseas, since its them this primarily applies to) player is not UK domiciled? What happens if he organises his affairs such that he does not spend enough time in either UK or OZ (or wherever) to get caught under the relevant residency/domicile rules? What about the "Singapore Parachute" when funds are transferred when the player is in the air on his way back? For example?



And that's before we get into some of the murkier activities involving club owners or their pals paying money trough the back door into offshore accounts that people speculate about.