Re: tax change problems for Lima, Finch and Hoffman! : Mon Dec 20, 2010 7:43 pm  

Cherry.Pie wrote:

Carneys Cover wrote:

http://www.dailytelegraph.com.au/sport/nrl...r-1225974123983

did not think we were involved in this off shore stuff

well reap what you sow we could end up in bother over this now along with other clubs obviously

I'm pretty sure it has absolutely nothing to do with the clubs, just the players. Not that I'm knowledgeable about this sort of stuff, but I think it was a way for the Aussie players to keep more of the money they earned and pay less in taxes.
It all counts on the salary cap anyway.
The negative for clubs is that they will have to pay more for overseas players and there could be some renegotiating going on.

Salary cap?

Re: tax change problems for Lima, Finch and Hoffman! : Mon Dec 20, 2010 8:07 pm  

As far as I can see it's the players problem to sort out, not the clubs

Re: tax change problems for Lima, Finch and Hoffman! : Mon Dec 20, 2010 9:48 pm  

it involves both the players AND the clubs!!!the clubs agree to transfer part of their salary in to an offshore a/c(regarded as a retirement fund)to lower tax paid.the only amount which is on the cap,is the money they are taxable for!hence the apparent reason shaun berrigan wants out and back to oz.before all this came to light,berro had sorted it out HIMSELF to come off the quota,but upon realising he is going to be quite a bit ''down'' on his money,is wanting to run!!

Re: tax change problems for Lima, Finch and Hoffman! : Mon Dec 20, 2010 10:05 pm  

jimmyfivebellies wrote:

it involves both the players AND the clubs!!!the clubs agree to transfer part of their salary in to an offshore a/c(regarded as a retirement fund)to lower tax paid.the only amount which is on the cap,is the money they are taxable for!hence the apparent reason shaun berrigan wants out and back to oz.before all this came to light,berro had sorted it out HIMSELF to come off the quota,but upon realising he is going to be quite a bit ''down'' on his money,is wanting to run!!

That's not true.
The cap amount is the full salary.
If a player is on £100K and say £40K is paid a working salary and £60K as pension (offshore) payments then the full £100K would be registered as the players cap value but he would only pay full tax (and I presume NHI contributions) on the £40K, he would pay much less tax on the £60K portion.

That's my understanding but it's probably far more complicated.

Re: tax change problems for Lima, Finch and Hoffman! : Tue Dec 21, 2010 9:00 am  

Rogues Gallery wrote:

jimmyfivebellies wrote:

it involves both the players AND the clubs!!!the clubs agree to transfer part of their salary in to an offshore a/c(regarded as a retirement fund)to lower tax paid.the only amount which is on the cap,is the money they are taxable for!hence the apparent reason shaun berrigan wants out and back to oz.before all this came to light,berro had sorted it out HIMSELF to come off the quota,but upon realising he is going to be quite a bit ''down'' on his money,is wanting to run!!

That's not true.
The cap amount is the full salary.
If a player is on £100K and say £40K is paid a working salary and £60K as pension (offshore) payments then the full £100K would be registered as the players cap value but he would only pay full tax (and I presume NHI contributions) on the £40K, he would pay much less tax on the £60K portion.

That's my understanding but it's probably far more complicated.

I think you're correct but what will be looked at is the players effective salary, as 60K is tax free he is effectively getting paid 124K and this would have been the understanding he signed on. The clubs may have a valid point saying they have signed a contract but they will have some seriously unhappy players on their hands. I can see a fair few clubs sacrificing one 'name' to allow them to keep the rest.

Re: tax change problems for Lima, Finch and Hoffman! : Tue Dec 21, 2010 10:11 am  

Here's the taxmans link. http://www.pensionsworld.co.uk/pw/article/clampdown-on-high-earners-efrbs-and-ebts-1237401 Any pension fund managers on here?

Here's the taxmans link. http://www.pensionsworld.co.uk/pw/article/clampdown-on-high-earners-efrbs-and-ebts-1237401 Any pension fund managers on here?