TaxCorporate TaxGerman taxman ends Hargreaves move to Man Utd

German taxman ends Hargreaves move to Man Utd

Sale of England mid-fielder to Man Utd is too much of a tax liability

Manchester
United’s
bid to sign England international
Owen
Hargreaves
from Bayern Munich were scuppered because the German club thought
it would be too costly from a tax perspective.

Bayern chairman
Karl-Heinz
Rummenigge
told SkySports that Germany’s tax laws make it highly impractical
for Bayern to consider any sale.

‘We thought about what to do if we got a good offer, but only the finance
minister would be happy,’ he said

‘Even if we got €30m (£20m) we can only get the tax back on contracts, so we
will not sell Hargreaves,’ he added.

Rummenigge claimed that a sale price of €30m over four would mean the club
would earn €22.5m (£15.2m) in the first year and would have to pay tax on that.

Hargreaves is currently out injured with a broken leg.

Further reading:

Football manager keeps job despite tax conviction

Forensic accountants expected to continue football
probe

Accountant bungles on football field

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