Star footballer ‘paying more tax than Starbucks and Amazon’ after refusing Jersey deal

Monday 26 November 2018

A star Premier League footballer is reportedly set to pay more tax than Amazon and Starbucks combined after turning down a beneficial Jersey tax deal.

Chelsea midfielder N’Golo Kanté signed a new five-year contract with his club last week.

The deal will see the 27-year-old Frenchman paid £290,000 per week, allegedly translating to a potential tax bill of over half a million for HMRC each month. 

The news comes around just one week after it was reported that in 2016 Kanté declined to have part of his salary and image rights earnings paid into a Jersey company – a tax arrangement which it's claimed could have saved him £870,000 annually under his previous salary.

I have chosen to join @chelseafc in 2016 as it has always been my priority. I want to thank the Management of the Club, the President and my agent for making this agreement possible. I am grateful to my teammates and to our amazing fans as the adventure continues. Common’ Chelsea pic.twitter.com/5hieULDX1L

— N'Golo Kanté (@nglkante) November 23, 2018

According to a leaked email published by French investigative website Mediapart, Kanté was “inflexible” despite alleged pressure from his club over the money-saving measure, and held firm that he “simply wants a normal salary.”

It is not uncommon for footballers’ image rights to be held in offshore companies.

A company called NK Productions was set up in Jersey for the purpose of helping the midfielder to reduce his tax bill, but, despite remaining ‘live’, it was never used. 

Kanté was said to be “increasingly concerned” about having his profits based in a Jersey structure amid media reports of tax investigations into football players, and was worried that such a scheme could lead him to also be questioned by the authorities. 

The early chapter in the Kanté’s time with Chelsea might have played out two years ago, but it appears he is sticking to those principles now.  

Pictured: Kanté was told he could save hundreds of thousands per year by using a Jersey company, but decided against it.

Having signed a £15million-per-year new deal with the Stamford Bridge club last week, The Sun reported on Saturday that Kanté will pay £6.7million in total across the year. 

The total puts him ahead of Amazon and Starbucks. 

Reports have suggested that Starbucks’ tax bill stood at around £4.5million, while Amazon paid £1.7million last year.

The online retail giant had been expected to pay around £4.6million, but paid out a dividend to shareholders, which allowed them to reduce the amount they contributed.

Structuring image rights funds through offshore companies is a common practice among the world’s sporting elite. 

Tomorrow's front page: Chelsea star N'Golo Kante will pay more tax than Amazon and Starbucks combined after signing new deal pic.twitter.com/INInrWVSOr

— The Sun (@TheSun) November 23, 2018

When one of the world’s most expensive footballers, Paul Pogba, was revealed to have used a Jersey company for this purpose, there was no suggestion of wrongdoing, but the news did raise questions internationally over the morality of companies with no “economic substance” created only to take advantage of offshore jurisdictions’ favourable tax conditions. 

In a few weeks time, Jersey politicians will be asked to vote on a new law aiming to clamp down on so-called “shell companies”.

Put forward by the External Relations Minister, Senator Ian Gorst, in a bid to stop the island from being blacklisted by the EU, the legislation would see companies fined up to £100,000 or risk being struck off the companies register if they cannot prove they are genuinely conducting business on the island.

States Members will debate the plans on 4 December. 

Lead photo: Kanté lifting the Premier League trophy. (PA)