Top football agent scores 拢1.2 million tax avoidance own goal
Jerome Anderson was investing in the recruitment and training of young players at a football academy in South Africa, but not paying the tax that was due.
Former football agent Jerome Anderson has lost his 拢1.2 million tax battle with HM Revenue and Customs (HMRC).
The case, heard at the Upper Tribunal, shows that Anderson and 8 others failed in their attempt to avoid large amounts of tax.
The scheme involved investments in the recruitment and training of young footballers at the Bafana Soccer Academy in South Africa.
Anderson attempted to use this investment to claim a 拢3 million artificial trading loss to reduce his tax bill by huge amounts of money.
The tribunal found that Anderson鈥檚 activities were more like those of an investor, and this didn鈥檛 show that he was trading.
This decision means he could not claim a trading loss and tax was due.
Penny Ciniewicz, HMRC鈥檚 Director General for Customer Compliance, said:
The court has made it clear that these schemes don鈥檛 work.
Our public services rely on everyone paying their taxes and it鈥檚 unfair for people not to pay their share.
Anyone who鈥檚 caught up in tax avoidance and wants to put it behind them should come forward now and settle what they owe.
This latest victory continues HMRC鈥檚 excellent record of winning 9 out of 10 tax avoidance cases taken to court, with many more settling what they owe before reaching that stage.
Further information
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This was the first case to consider section 74B of the Income Tax Act 2007, an anti-avoidance provision that denies an individual any sideways loss relief claimed where that individual carries on a trade in a 鈥榥on-active鈥� capacity and where that loss arises in connection with tax avoidance arrangements.
An image of Penny Ciniewicz, Director General of HMRC鈥檚 Customer Compliance Group, is available on .