HMRC approaches each game it is involved in as if it is not just the strongest team in the league but is also the referee - and one who changes the rules to suit himself whenever he sees play that he considers "unfair". However, unlike Sepp Blatter's FIFA, who deliberately cover their eyes like the proverbial wise monkey so they see no evil, this particular game does have an off-pitch official in the form of the Courts.
HMRC's opposition this time was Portsmouth FC, or rather their administrators. HMRC complained that the proposed Corporate Voluntary Arrangement ("CVA") to deal with the Club's debts was unfair to them, partly because it failed to take into account £13 million of tax it claimed it was owed in relation to payments for image rights. However, this was a rather dubious appeal for a penalty on HMRC's part as it had previously lost a case before the Tax Tribunal which ruled that no tax was due on such payments. Fortunately, even though HMRC hoped they could pull the wool over the referee's eyes on this occasion, the Court saw through this dirty tackle & awarded a free kick to Portsmouth. The CVA will now go ahead as originally planned.
This news came on the same day that it was reported that HMRC was also being blamed by Professional Golf Association Tour officials for the increasing difficulties they face in encouraging foreign players to compete in European Tour events. This is a consequence of HMRC's success in a case it brought against the tennis player André Agassi in 2006, following which it is now able to impose UK tax not just on prize money but on sponsorship & endorsements connected with UK sporting events. PGA officials are reported to be particularly worried about the effects this may have on the forthcoming Ryder Cup which is being held in Wales this year.
We already have a tax system which encourages the UK's most successful sportsmen to base themselves abroad and if it also discourages big name foreign sportsmen from coming here to xompete, maybe it is time for a major rethink. Many of our sporting heroes may be selfish, spoiled prima donnas but there is no doubt that their activities in this country generate wealth, jobs and international prestige for the UK. It would be a shame if the shortsightedness of our greedy taxmen spoiled that.
