About v2Irish Sports stars to benefit from tax change BIG NEWS
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geoff998rugby
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Irish Sports stars to benefit from tax change BIG NEWS
by Sin é Fri 25 Oct 2013, 10:52 am
Someone posted this on Munsterfans.
Irish Sports stars to benefit from tax change
Competitors will no longer have to end careers in Ireland to qualify for income tax relief on retirement
Irish sports stars will no longer have to finish their careers here to qualify for income tax relief on retirement under a change made in response to EU Commission concerns. Under an amendment to the scheme published yesterday as part of the Finance Bill, a sportsperson may claim the relief if they are resident in an EEA or EFTA country at the time of retirement.
This comprises all the EU countries, as well as Iceland, Norway, Switzerland and Liechtenstein.
This opens up the possibility of an experienced rugby international such as Paul O’Connell spending the final couple of years of their career in France or England on big money contracts and still being able to claim the relief on their previous earnings in Ireland.
The total deduction that retiring sports persons can claim is now based on the Irish income arising from up to 10 of the 15 years prior to their retirement, including the year they retire. Previously, it was on the 10 years up to retirement.
The sports person is entitled to a relief of 40 per cent on their income from the sport. This cannot include earnings from sponsorship or image rights.
Permanently retired
The sports person must be permanently retired from their sport to claim the rebate from a scheme that was introduced by Charlie McCreevy during his time as minister for finance.
This change also opens up the possibility of a player such as Johnny Sexton being able to claim relief on the seasons he played for Leinster before heading to France earlier this year.
Under the old rules, Sexton would have had to return to a club in Ireland in advance of retiring from the sport to be eligible for this rebate.
Rugby benefit
This relief is open to a range of sports but mostly applies to rugby players given the professional structures in place for the four provincial teams operated by the Irish Rugby Football Union – Leinster, Munster, Connacht and Ulster.
However, professional golfers based here, or runners, boxers, jockeys or League of Ireland soccer players, might also be in the frame for a rebate on their taxes on retirement.
Irish Sports stars to benefit from tax change
Competitors will no longer have to end careers in Ireland to qualify for income tax relief on retirement
Irish sports stars will no longer have to finish their careers here to qualify for income tax relief on retirement under a change made in response to EU Commission concerns. Under an amendment to the scheme published yesterday as part of the Finance Bill, a sportsperson may claim the relief if they are resident in an EEA or EFTA country at the time of retirement.
This comprises all the EU countries, as well as Iceland, Norway, Switzerland and Liechtenstein.
This opens up the possibility of an experienced rugby international such as Paul O’Connell spending the final couple of years of their career in France or England on big money contracts and still being able to claim the relief on their previous earnings in Ireland.
The total deduction that retiring sports persons can claim is now based on the Irish income arising from up to 10 of the 15 years prior to their retirement, including the year they retire. Previously, it was on the 10 years up to retirement.
The sports person is entitled to a relief of 40 per cent on their income from the sport. This cannot include earnings from sponsorship or image rights.
Permanently retired
The sports person must be permanently retired from their sport to claim the rebate from a scheme that was introduced by Charlie McCreevy during his time as minister for finance.
This change also opens up the possibility of a player such as Johnny Sexton being able to claim relief on the seasons he played for Leinster before heading to France earlier this year.
Under the old rules, Sexton would have had to return to a club in Ireland in advance of retiring from the sport to be eligible for this rebate.
Rugby benefit
This relief is open to a range of sports but mostly applies to rugby players given the professional structures in place for the four provincial teams operated by the Irish Rugby Football Union – Leinster, Munster, Connacht and Ulster.
However, professional golfers based here, or runners, boxers, jockeys or League of Ireland soccer players, might also be in the frame for a rebate on their taxes on retirement.
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by rodders Fri 25 Oct 2013, 11:16 am
Thank feic maybe we can now offload some dead wood to the French and English clubs ....... 
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by ME-109 Fri 25 Oct 2013, 11:41 am
That seems to be completely nonsensical. It would have made more sense to put some time limit on the tax break (i.e they had to have 5 years continuous service or something) so that the provinces don't end up being academies for the English and French leagues....
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by LeinsterFan4life Fri 25 Oct 2013, 12:20 pm
Looks like its bye bye to Heaslip and POC then.
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by ScarletSpiderman Fri 25 Oct 2013, 12:34 pm
BOD to spend a season in the sun in a lower level French club like Tarbes?LeinsterFan4life wrote:Looks like its bye bye to Heaslip and POC then.
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by geoff998rugby Fri 25 Oct 2013, 12:35 pm
Seems daft on the surface - players will be departing for big bucks post 30 years old.
Also as a point of correction - it makes absolutely no difference to Ulster players
Also as a point of correction - it makes absolutely no difference to Ulster players
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by Sin é Fri 25 Oct 2013, 12:42 pm
Its an EC enforced ruling.ME-109 wrote:That seems to be completely nonsensical. It would have made more sense to put some time limit on the tax break (i.e they had to have 5 years continuous service or something) so that the provinces don't end up being academies for the English and French leagues....
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by Submachine Fri 25 Oct 2013, 12:48 pm
I've always wondered about this. Is this tax relief on contributions to a pension or is it an actual cash back deal that on retirement a player gets a chunk of the tax they paid throughout their playing carrers in Ireland paid back as a lump sum?
Either way it just took away the biggest bargaining chip the IRFU had to play when negotiating contracts.
I think the big name Irish players will be lured away just as Wales top players have been in recent seasons. Expect some barren years on the European front for quite some time.
Either way it just took away the biggest bargaining chip the IRFU had to play when negotiating contracts.
I think the big name Irish players will be lured away just as Wales top players have been in recent seasons. Expect some barren years on the European front for quite some time.
Last edited by Submachine on Fri 25 Oct 2013, 12:50 pm; edited 1 time in total (Reason for editing : spelling)
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by Don Alfonso Fri 25 Oct 2013, 12:49 pm
Ulster might actually benefit. We've never had rafts of players coming North - now they can, and still benefit from the tax break.
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by Submachine Fri 25 Oct 2013, 12:53 pm
Ulster have already suffered. Would Best, Bowe, Humphries or Wilson have headed to English clubs if they had they faced the prospect of forgoing a big cash windfall on retirement?
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by ME-109 Fri 25 Oct 2013, 12:54 pm
In what way? Tax harmonisation? I didn't think that was possible. Sounds a bit strange.Sin é wrote:Its an EC enforced ruling.ME-109 wrote:That seems to be completely nonsensical. It would have made more sense to put some time limit on the tax break (i.e they had to have 5 years continuous service or something) so that the provinces don't end up being academies for the English and French leagues....
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by Sin é Fri 25 Oct 2013, 12:56 pm
I agree. Ulster have managed to hold onto most their players as well without that incentive. I think most players will want to stay if at all possible.Don Alfonso wrote:Ulster might actually benefit. We've never had rafts of players coming North - now they can, and still benefit from the tax break.
I'm delighted for Strings who must have known that it was going to happen.
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by Sin é Fri 25 Oct 2013, 12:58 pm
ME-109 wrote:In what way? Tax harmonisation? I didn't think that was possible. Sounds a bit strange.Sin é wrote:Its an EC enforced ruling.ME-109 wrote:That seems to be completely nonsensical. It would have made more sense to put some time limit on the tax break (i.e they had to have 5 years continuous service or something) so that the provinces don't end up being academies for the English and French leagues....
Irish sports stars will no longer have to finish their careers here to qualify for income tax relief on retirement under a change made in response to EU Commission concerns. Under an amendment to the scheme published yesterday as part of the Finance Bill, a sportsperson may claim the relief if they are resident in an EEA or EFTA country at the time of retirement.
This comprises all the EU countries, as well as Iceland, Norway, Switzerland and Liechtenstein.
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by ME-109 Fri 25 Oct 2013, 1:00 pm
Splitting hairs maybe but I wouldn't say its enforced. Probably comes under labour laws rather than tax laws.
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by profitius Fri 25 Oct 2013, 1:32 pm
Brilliant news! Having to end your career in Ireland was always a big downside to it because the older players wouldn't budge and some even might have retired earlier than they would have wanted.
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by rodders Fri 25 Oct 2013, 1:55 pm
Aye but the guys won't get a tax rebate on what they earn up north .... we don't want a load of has beens coming our way!Don Alfonso wrote:Ulster might actually benefit. We've never had rafts of players coming North - now they can, and still benefit from the tax break.
I don't think it will impact us at all - Connacht will be most impacted I'd say as a lot of their guys are coming from the other academies.
I think this will actually help Munster and Leinster (and Ireland). I mean Munster would have been shot of ROG 3 seasons ago under these new rules... and I mean why are the IRFU paying D'arce and his greying facial hair, let him head down the south of France - he can play the odd game then sip cocktails down the beach in his flip flops.
Everyone's a winner.
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by geoff998rugby Fri 25 Oct 2013, 1:59 pm
Irrelevant to the palyers in questionSubmachine wrote:Ulster have already suffered. Would Best, Bowe, Humphries or Wilson have headed to English clubs if they had they faced the prospect of forgoing a big cash windfall on retirement?
Best was effectively kicked out as was Wilson.
The difference is Wilson got his head together and returned
Bowe publically stated his departure was nothing to do with money - he was fed up with club mis managment and dressing room disharmony. He didn't go to an English club by the way
Humphries left because he knew his contract was not going to be renewed and he knew he would be second fiddle to Paddy Jackson. Big bro help get him an extended contract with another team.
So I don't think any of these examples are applicable
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by GunsGerms Fri 25 Oct 2013, 3:13 pm
Id love to see him play for the Tahs.ScarletSpiderman wrote:BOD to spend a season in the sun in a lower level French club like Tarbes?LeinsterFan4life wrote:Looks like its bye bye to Heaslip and POC then.
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by Submachine Fri 25 Oct 2013, 3:17 pm
I knew Best had a bad rep, didn't know Wilson was on the naughty step too. But would the prospect of losing out financially in the future have curbed their behaviour at the time? Probably not being yougfellas.geoff998rugby wrote:Irrelevant to the palyers in questionSubmachine wrote:Ulster have already suffered. Would Best, Bowe, Humphries or Wilson have headed to English clubs if they had they faced the prospect of forgoing a big cash windfall on retirement?
Best was effectively kicked out as was Wilson.
The difference is Wilson got his head together and returned
Bowe publically stated his departure was nothing to do with money - he was fed up with club mis managment and dressing room disharmony. He didn't go to an English club by the way
Humphries left because he knew his contract was not going to be renewed and he knew he would be second fiddle to Paddy Jackson. Big bro help get him an extended contract with another team.
So I don't think any of these examples are applicable
I know Bowe went to a Welsh club but my point was he MAY have thought twice about leaving if there was a financial disincentive to do so. As for Ian Humphries you said he knew he wasn't being offered a new contract and he was going to be no. 2 to Jackson. It can't be both. And is being second choice at Ulster such a bad thing?
Siné wrote:I'm delighted for Strings who must have known that it was going to happen.
I think you're doing Stringer a diservice there. He wanted to play rugby. He moved to another club. If it had been known in general, there would have been an issue made of it when Sexton went to France.
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by geoff998rugby Fri 25 Oct 2013, 3:56 pm
Humphries would have been 2nd string to Jackson for 1 year and then thrown on the scrap heap at 32. It was to secure a 3/4 year contract that he left.
I am convinced Bowe would have left anyway - he was not motivated by money.
So I think the claim that a cash wind fall to any of them would not have been relevant remains true
I am convinced Bowe would have left anyway - he was not motivated by money.
So I think the claim that a cash wind fall to any of them would not have been relevant remains true
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by Submachine Fri 25 Oct 2013, 4:01 pm
Fair nuffgeoff998rugby wrote:Humphries would have been 2nd string to Jackson for 1 year and then thrown on the scrap heap at 32. It was to secure a 3/4 year contract that he left.
I am convinced Bowe would have left anyway - he was not motivated by money.
So I think the claim that a cash wind fall to any of them would not have been relevant remains true
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by profitius Fri 25 Oct 2013, 4:30 pm
It will benefit Ireland more than the provinces. And it will benefit the academy/young players who have to wait for a half a decade to get a chance.
I think we're going to see more players moving in Irish rugby. Theres a good conveyor belt of talent coming through and with more "blockers" leaving Irish squads it should open up more opportunities. You also have the older players who want to experience playing abroad. for a few years.
So all in all it will end up more like the NZ and Australian model of needing to rely on academies to keep up although not as extreme because the provinces have greater spending power. The difference between Aus/NZ and Ireland currently is all the older players leave Aus/NZ for European clubs while in Ireland its younger players that are leaving.
I think we're going to see more players moving in Irish rugby. Theres a good conveyor belt of talent coming through and with more "blockers" leaving Irish squads it should open up more opportunities. You also have the older players who want to experience playing abroad. for a few years.
So all in all it will end up more like the NZ and Australian model of needing to rely on academies to keep up although not as extreme because the provinces have greater spending power. The difference between Aus/NZ and Ireland currently is all the older players leave Aus/NZ for European clubs while in Ireland its younger players that are leaving.
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by ME-109 Fri 25 Oct 2013, 4:45 pm
Hmmm...sounds good right? However what happens when SOB, Zebo etc get offers they cant refuse. As per Alan Quinlans column this week the length of time of a players career is limited and they want/need to maximise their earning power. Its what professionalism is all about. A time limit or sliding scale would have still allowed for people to leave at the right time while maximising playing power for the provinces.
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by profitius Fri 25 Oct 2013, 4:55 pm
There will be players leaving. We'll have to accept that. However the French are bringing in stricter rules in a few seasons and they're more likely to go for a Kiwi, Safa, Aussie or Islanders.
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Re: Irish Sports stars to benefit from tax change BIG NEWS
by ME-109 Fri 25 Oct 2013, 5:05 pm
Well with the future of the HC still in the works it would be a concern. Only time will tell
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