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Cricket stars face £50,000 tax bill over free tickets
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19 May 2007
But now the taxman has them in his sights.
Andrew Flintoff, Monty Panesar, Steve Harmison and the rest of the squad are furious that they could be forced to pay up to £50,000 in backdated tax on the tickets.
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The Inland Revenue is pressing for the complimentary tickets to be classed as 'benefits in kind' and so liable to tax at 40 per cent.
It is understood to be demanding payment backdated over several years.
Players selected for England have enjoyed an entitlement to four tickets for the first four days of a Test, plus four for each one-day international, including hospitality packages comprising lunch and tea with a commercial value of around £600 a day.
With seven Tests per home season and ten one-day internationals, a player picked for all England's home matches could receive 38 days of tickets and hospitality packages at a total value of £22,800 - and therefore possibly be liable to pay £9,120.
The players have been angered and bewildered by the unexpected demand which, ironically, they received in a letter along with allocation of tickets for the current first Test against West Indies at Lord's.
They have asked the Professional Cricketers' Association to take up the matter with the cricket board and the taxman.
Meanwhile, testimonial matches for top England rugby players are also under investigation by the taxman.
Revenue officials have written to the 12 Premiership clubs, asking for details of benefit events they have organised in recent years.
Four of England's World Cup winners, <\<>Martin Johnson, Phil Vickery, Lawrence Dallaglio and Neil Back, have been honoured in this way. Although there is no suggestion these players are being targeted, tax inspectors are understood to be keen to destroy the misconception that proceeds from lucrative testimonial seasons and black-tie dinners are tax-free.
Dallaglio is thought to have made more than £1million from matches in his honour. He gave some to charities, including a fund for injured players.
To avoid a hefty tax bill, players have to show the benefit event was an unsolicited gift. Revenue and Customs said: "Testimonials are not "tax-free" as is commonly reported. There is no question of removing tax exemption."
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