Tim Cahill caught up in tax avoidance scheme
Socceroo Tim Cahill could be facing a hefty tax bill after he was linked to a British government investigation into a number of high profile celebrities.
It is reported that in 2008, Cahill became a director of Phoenix Film Partners, a fund designed to take advantage of tax breaks and incentives offered to individuals who invested in the British film industry.
Cahill along with a raft of other celebrities including David Beckham, Steven Gerrard, Emile Heskey, BBC presenter Jeremy Paxman and television personalities Ant & Dec may receive accelerated payment notices from the British tax authorities, as the government attempts to recoup approximately $A1.8 million in tax revenue it claims was unfairly avoided.
Whilst there is no suggestion of illegal activity, the British Government has recently cracked down on such schemes and investment initiatives which they have described as ‘unfair’.
Investors reportedly have 90 days to repay the unpaid tax, for some this could mean bills upwards of one million pounds.
The previous Labour government offered these tax breaks for wealthy individuals to support the British film industry, which helped finance several major productions including the Girl with a Pearl Earring, Avatar and Life of Pi.
However after the initiatives were in place, it became clear that companies like Phoenix Film Partners could offer significant tax savings to investors by writing off losses against other income.
Between his lucrative contracts playing for Everton and now with the New York Red Bull, Cahill has amassed a relative fortune over the years, but he could find his pockets a little lighter if things progress.
