Several Premier League clubs have evaded up to £250 million (284 million euros) in taxes between 2019 and 2021, according to an estimate by Tax Policy Associates (TPA).
The study argues that the practice was carried out on an “industrial scale” through a system that “artificially structures” club payments to players’ agents.
TPA estimates Premier League clubs have avoided up to £470 million (€534 million) since 2015.
After the report was published, the British Treasury confirmed that he was investigating “several teams” and, although he did not give details, the British media reassured Manchester City, Manchester United, Arsenal and Chelsea. Among other things, we have benefited from this tax practice in recent years.
Tax Policy Associates explained in the report.
The purpose of this rule is to avoid payroll taxes and ICMS levied on large commissions paid to football agents. In fact, these agents work for the players. But the system creates artificial contracts in which the agent acts for both the club and the player, in so-called “dual agency contracts”.
According to the law firm, the clubs “then pay half of the (agent’s) fees”, although the players actually benefit from all the agent’s work and that income “evades sales tax”. and VAT”.
Experts argue that if only the player took over the payments from his agent, the Treasury would receive about 60% of the total taxes, although this amount is reduced by half if the bill is split between the club and the footballer through the said referred to as the “Dual Agency Agreement”.
TPA estimates the practice saved players, agents and clubs £81m (92m) in tax in 2019; 91 million (103) in 2020; 81 million (92) in 2021 to surpass £250 million in three years.
Figures for top clubs in 2021, the company adds, are £10.9m for Manchester City, £10m for Manchester United, £8.1m for Liverpool, while Chelsea in 2020 will have the biggest savings at £12.8m booked.
The BBC recalls that in 2021 the Treasury issued an order requiring clubs to certify that agents are legally working for both parties to avoid 50% split of fees between the company and players and that the contract reflects the true nature of represents the representation.
A spokesman for the Treasury Department told media that it “cannot be assumed” to be a “tax evasion” as its use may “comply” with tax rules, he added.
However, we carefully review agreements between clubs and employees and work closely with the football industry to clarify and address tax risks.
(With information from EFE)
Source: La Neta Neta
I’m George Gonzalez, a professional journalist and author at The Nation View. With more than 5 years of experience in the field, I specialize in covering sports news for various print media outlets. My passion for writing has enabled me to craft stories that capture the attention of readers all over the world.
