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Players pick up tax liability if a Club pay their agent
England - 05 October, 2004
Dr Bill Gerrard, professor of sport management and finance at Leeds University Business School, claims that according to English income tax laws, fees paid by clubs to agents are effectively indirect remuneration to the players, who would therefore be liable for taxation. “If an agent isn’t performing any services to a club it is effectively payment in kind to the player. If players are picking up tax liability for agents’ fees that will very much make it in the player’s interest to limit the level of agents’ fees”, Dr Gerrard told media. However, such payments are also in contradiction to art 12.4 of FIFA Regulations governing licensed players’ agents, stating that “only the client engaging the services of the players' agent, and no other party, may remunerate him.”
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