Athletes and Taxes

No sooner had I submitted my last two articles when a story caught my eye that supported the points of both.  That story was that according to the tax authorities, most athletes did not file any tax returns for last year and many have not done so for many years.

I had spoken in one of my articles about whether our athletes are being properly managed and this story raises that concern again.  Let me be clear, it is the responsibility of each Jamaican resident who is self employed to file a tax return and to pay any income tax and statutory deductions that are due.  However, it is in the best interest of the manager to ensure that their athletes comply with the legal requirements.  If the athletes are found to be guilty of tax evasion, apart from whatever penalties may be imposed, there could be jail sentences imposed.  If the athlete goes to jail then the manager is unable to earn an income from that person while incarcerated.  Further we have seen recently where the tax authorities have placed travel restrictions on persons owing tax.   Either of these events could cause athletes to miss contractual obligations and the manager may be seen as an unreliable person and one with whom it is better not to do business.

The second articles dealt with people who are not paying taxes and the reluctance of the tax authorities to adequately address the issue.  Over the last year the Inland Revenue has admitted the following

60% of all property tax is unpaid

90% of professionals (lawyers, doctors, accountants, etc) don’t file tax returns

The majority of self employed persons, barbers, hairdressers, vendors, taxi drivers, salons, etc. do not file returns

The majority of shop operators and in particular those which operate downtown do not make GCT returns.

Most entertainers do not file tax returns

Now we can add athletes to that list and again we ask the question: if the tax authorities are aware of all the persons who do not file returns why isn’t more effort made to go after these  people?  Perhaps one day we will get an answer to that question, I just hope that I am still alive to see it.