News of the Screws:
Premiership clubs are facing a huge £30m VAT bill over payments to soccer agents, writes ROB BEASLEY.
The shock tax demands are the result of an investigation into the game's big-money transfers by HM Revenue and Customs. Every top-flight club has been contacted by HMRC and Arsenal and Newcastle will go before an appeals tribunal with their lawyers next month as they attempt to challenge the tax demands.
The other top clubs are anxiously bracing themselves for the result of what is viewed as an important test case.
One club source said: "The tribunal's decision will determine just how much the clubs will have to pay. If it goes badly it could be a huge sum."
The taxman's case centres on the practice of clubs settling the fees of a player's agent and then claiming back the VAT on the payment, which could be against the rules.
The key issue is whether agents acting in negotiations are providing their services to the clubs or the players.
If they are covering the costs for the player then they are in breach of the rules.
The clubs will argue they have done nothing wrong.
They will say that it is necessary to retain the sevices
If clubs have paid a player's agent then that fact should be declared on the footballer's tax form as a benefit in kind.
If it hasn't, then the player could now receive a tax demand too. Chelsea and Manchester United have both been grilled by HMRC.
United have also declared that in the summer of 2004 they had paid the agent of Wayne Rooney (left), Paul Stretford, £1.5m for masterminding the England star's £28m move from Everton to Old Trafford. It shows how much money is at stake — and the taxman could go back SEVEN YEARS.
Chelsea have bought and sold players to the value of almost £290m in the last three seasons.
So their agents fees could be in the region of £15m, with the VAT worth around £2.6m.