By Tim Parsons-
Former football agent Jerome Anderson has lost his £1.2 million tax battle with HM Revenue and Customs (HMRC).The case, heard at the Upper Tribunal, shows that Anderson and 8 others failed in their attempt to avoid large amounts of tax.The scheme involved investments in the recruitment and training of young footballers at the Bafana Soccer Academy in South Africa.Anderson attempted to use this investment to claim a £3 million artificial trading loss to reduce his tax bill by huge amounts of money.
The tribunal found that Anderson’s activities were more like those of an investor, and this didn’t show that he was trading. The news will tarnish Anderson’s reputation because as a former top agent, he should have avoided a shameful fiasco of this kind. Rich individuals often avoid tax because they believe they should keep every penny they have earned. However, that freedom only applies to people who live in non tax paying societies. Tax avoiding individuals are purely selfish and law breaking individuals. It puts them to shame considering the status they have acquired before that.This decision means he could not claim a trading loss and tax was due.
Jerome Anderson, of Barnet, north London was summoned to court for fraud and perjury charges in 2015 relating to a legal battle over a £1m transfer deal.The Agent Tony McGill, 60 brought the private prosecution against Gartside and 10 others including Anderson whom he accused of five counts of perjury and one of fraud by false representation. Anderson was accused of four counts of perjury and one of misrepresentation, but was eventually accused of all charges. The case related to the 2007 transfer of Gavin McCann from Aston Villa to Wanderers, which McGill alleged he was cut out of by Wanderers and agency Sports and Entertainment Media Group (SEM).
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Anderson may have bust that case, but revelation that the former top agent tried to avoid tax does not do his reputation any good. Jerome Anderson has to do more to keep his name away from fraudulent activities or anything that gives that impression.
Anderson was first trained as a banker before transiting to sports management. His list of top clientele includes a number of high-profile footballers that includes Arsenal Football Club legends Dennis Bergkamp and Marc Overmars and former Manchester City ace Uwe Rosler. It has also been reported that Anderson acted as key adviser during the takeover of Blackburn Rovers Football Club by Indian meat processing giant Venky’s.
Penny Ciniewicz, HMRC’s Director General for Customer Compliance, said:
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The court has made it clear that these schemes don’t work.
Our public services rely on everyone paying their taxes and it’s unfair for people not to pay their share.
Anyone who’s caught up in tax avoidance and wants to put it behind them should come forward now and settle what they owe.
This latest victory continues HMRC’s excellent record of winning 9 out of 10 tax avoidance cases taken to court, with many more settling what they owe before reaching that stage.
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