Taxman goes after Ashes heroes
Ten years on from the Ashes series that briefly made English cricket sexy, some of the players involved are facing allegations of impropriety in that most unsexy of areas: tax
ESPNcricinfo staff
06-Mar-2015
David Gower, seen here interviewing Ian Bell, insist the investment was a genuine risk • Tom Dulat/Getty Images
Ten years on from the Ashes series that briefly made English cricket sexy, some of the players involved are facing allegations of impropriety in that most unsexy of areas: tax.
A number of former England cricketers, including members of the 2005 Ashes-winning side, could be facing "very substantial" bills from the UK taxman, according to a report in the Guardian. The demands concern investments made almost a decade ago, which Her Majesty's Revenue and Customs is investigating as alleged tax avoidance.
Players including Michael Vaughan, Matthew Hoggard, Ashley Giles and Paul Collingwood - who played in the 2005 Ashes - reportedly invested in the UK film industry via partnerships set up by a company called Ingenious Media. HMRC is now challenging the tax relief granted by such schemes.
Three former England captains, David Gower, Mark Butcher and Alec Stewart, as well as the current managing director of England cricket, Paul Downton, are all listed as investors.
The Professional Cricketers' Association has put those concerned in touch with a financial advisor to assist in their cases, and Ingenious is currently challenging HMRC's demands at a tribunal. Of those named, only Gower was willing to talk publicly to the Guardian, and he was critical of the tax authority's stance.
"For me the money involved is not life-threatening, it won't wipe me out," Gower said. "But the principle is just wrong and I want to stand up against it. The government wanted to encourage investment in the film industry, there was a genuine element of risk. The films were successful and generated more than £1bn in taxable income and now HMRC is coming back 10 years later saying the schemes weren't valid.
"There was a tax planning element to the scheme, I would be wrong to deny that; you are always looking for ways to make the most of your resources. But efficient tax planning is 100% legal. Now the political outlook has changed, tax avoidance has become unpopular and HMRC is changing the rules retrospectively, which is appalling."