Has David Beckham pulled off a piece of tax avoidance brilliance which means more money for Britain?
If the latter is the more prominent of the two answers then feel free to take your hat off to him for a masterstroke and praise him for giving his tax pounds to the British government.
Higher earners in France get taxed at a rate of 75% and the fact Beckham’s family now lives in London means he can claim that he’s not a resident of France.
This is significant because that 75% includes global earnings of French residents so Beckham is effectively paying all of his tax related to sponsorship and endorsements to the British government instead of the French government.
His gesture to give his £170,000 per week PSG wages to a local French charity cannot be knocked as a piece of tax avoidance, although all money given to charities in France can’t be taxed.
That still remains a very honourable and noble gesture from a professional sportsman who is lucky enough to be in the position where he can afford to do something as charitable as that.
Beckham will be receiving personal wages of £2,000 according to the French Player’s Union guidance so that he meets local requirements in Paris and effectively can’t be investigated or thrown into jail for tax fraud.
Make of it what you will, but it’s difficult to see the harm in what he’s doing, especially from an English perspective because all of his tax money will now be paid to Britain over another country.
It doesn’t all work against France because Beckham’s very presence in Paris and at PSG adds value to the French club and the area.
The amount of revenue he can generate through basics such as shirt sales and increased attendances will create extra revenue, which is not always going to be directly linked to him personally.
He will also create image rights during his time in France which will be taxable because that’s not something, which can be distinguished by anything other than the actual person.
Piece of genius?
image: © nasmac