The Taxation Of Non Resident Athletes

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Britain is famous for the extensive history of international sporting events. In regards to the tax perspective, professional athletes benefit from the Exchequer not only from the increase in consumption tax receipt from the fans but as a source of direct taxes from the organiser and athletes themselves. The proposal for the fiscal authority will create difficulties for non-resident athletes who will face the double taxation policy, only present the UK. The non-resident athletes who are not employed are treated as profits from a trade and taxed by the provisions of the Income Tax Act. The taxation of athletes is consistent with Article 17 of the OECD Model Tax Convention . There are also subject to withholding tax on payments or transfers made to a related activity as a form of pre-payment of this revenue. In 1988 specific legislation was introduced to address the issue of taxation of non-resident sports athletes, who earn the income based on the sports activity in UK. They are under an obligation to prepare and file a return for any additional income tax or to claim a refund. However, the time spent in the UK is under obligation tax deductions and can be taxed even if the payments are made abroad. The support for non-resident athletics comes from the Treaty on the Functioning of the European Union (TFEU) . I will demonstrate and support my answer with case law and scholars to support the argument that the UK needs to reconsider the methods by which it taxes non-resident athletes. However, there are not strong grounds for justifying the UK tax provisions which relate to payments from EU resident athletes. The non-resident athletes are obliged to pay any income they earn, and any payment or transfers made to a loan company direc... ... middle of paper ... ...13 Diamond League event, was related to the absence of runner Usain Bolt. In 2015, Usian Bolt returned to London Olympic Stadium after the Government confirmed tax breaks for athletes. In conclusion, this system of differential taxation can hardly be justified by the UK by relying on the prevention of tax avoidance argument if it is not on an artificial arrangement and particular obligation. The problem will occur from inconsistent fiscal policy concerning athletes ' participation in the event held across the country and incidentally the question for the fair taxation. In relation to a function of the single market, it is essential that disparities to be removed and the UK ought to reconsider the methods by which it taxes on- resident athletes. The UK needs the well clear fiscal policy towards the sporting events to enable it to bid major championship successfully.

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