LONDON (AP) — Britain’s tax authority has launched a clampdown on tax evasion in soccer to ensure players are not dodging payments during the country’s economic turmoil.
A specialist team within Her Majesty’s Revenue and Customs is investigating whether any soccer players are exploiting a loophole during transfers by getting their agents’ fees paid by the buying club or a third party.
The tax authority says it is “aware of a potential tax issue concerning the payment of agent fees and are taking steps to ensure the tax rules are respected.”
HMRC says that “when a third party pays a fee to an agent acting on behalf of an employee, the fee may count as part of the employee’s taxable earnings and so be liable to tax.”
