From the category archives:

sports & tax

Israeli tax authorities have acknowledged a raid on the management offices of the Maccabi Tel Aviv basketball team. The team, known as מ.כ. מכבי אלקטרה תל-אביב in Hebrew is a professional basketball team based in Tel Aviv, playing in the Israeli and European basketball First league. It is the basketball division of the Maccabi Tel Aviv sports club. The team is considered elite, having won the European Cup 5 times since 1977.

The Israel Tax Authority was careful to stress that the raid is not considered a criminal investigation at this time and the police are not involved. However, according to an Israel News report from YNET, the ITA has announced that it will be conducting an investigation related to tax evasion and money laundering charges.

There are allegations that Maccabi’s former vice president, Moni Fanan, had been “investing” the salaries of various players but was unable to account for the funds. Speculation is that he owed more than $20 million at his death. Fanan hanged himself at his apartment last week.

The current Maccabi Chairman, Shimon Mizrahi, has publicly stressed that Fanan’s activities are not connected with the team.

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Mayweather Gets a KO by IRS

September 22, 2009 · 0 comments

Floyd Mayweather and Juan Manuel Marquez

Boxer Floyd Mayweather Jr. didn’t quite walk away from his bout with Juan Manuel Marquez with all that he had hoped for… That $10 million prize money was chopped in half after he agreed to pay $5.6 million in back taxes to the IRS. The agreement put the breaks on a potential levy on Mayweather’s winnings for back taxes; the IRS had sent the Nevada Athletic Commission a notice of levy on September 4, about two weeks before Mayweather’s fight in an effort to collect the taxes due. They rescinded the levy notice about a week before the fight after reaching an agreement with Mayweather.

However, Mayweather’s tax attorney, Jeffrey Morse, claims that the feds never planned to take the money. Morse also said he expected the IRS to release the $6.17 million lien filed last year against Mayweather (that hasn’t happened yet). The levy was valued at about $5.6 million.

Despite Morse’s prepared statements PR nonsense characterizations about Mayweather’s intentions to become or remain compliant, Mayweather has quite a history with the IRS. Liens have been filed against Mayweather in prior years after he failed to pay what he owed in 2001, 2003, 2005 and 2006. This most recent lien was for 2007.

Mayweather also owes the State of New Jersey almost $200,000 for unpaid taxes (that debt has not yet been paid).

In addition to tax woes, Mayweather’s dance card has been quite full: he’s been liened by a number of homeowner associations and has at least one lawsuit pending for failing to make payments owed on a car. It seems that the boxer, who likes to call himself “Money”, may be able to manage himself in the ring but can’t seem to managed his money out of it.

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maradona.jpg

Diego Maradona, formerly referred to by legions of football fans as “the Golden One”, lost more than weight when he checked into a weight loss clinic at the Hotel Palace health spa in Merano, Italy. The 48 year old former football (yeah, that’s soccer to my US readers) standout checked into the spa in an attempt to get his weight under control. While he was there, the Italian police confiscated the earrings he was wearing; the three diamond earrings were estimated to be worth just under $6,000.

That may seem like a lot – but it’s just a fraction of the more than 31 million euros (about $45 million) that Maradona allegedly owes. Tax authorities in Italy claim that Maradona accrued the taxes in the 80s and 90s when he played for the league club Napoli. His time with the team earned him a spot as on the list as one of the greatest players of all time. An internet vote for FIFA Player of the Century award tied him with football great Pelé.

You’d think Maradona would learn his lesson. Three years ago, Italian police confiscated two Rolex watches worth about $15,000 when he showed up to play in a benefit match. The police were allowed to make the seizure due to a court order that authorizes authorities to take anything “within plain sight” that belongs to Maradona.

Maradona, for his part, has taken the Richard Hatch approach and claims that has always insisted that the taxes are the responsibility of team Napoli as his employer and not his. (Psst, Maradona, it didn’t work for Hatch, either.)

Maradona is no stranger to controversy. He has previously faced suspensions and expulsions for failing doping tests for cocaine and ephedrine. Maradona’s history of drug abuse lead to significant problems with his weight. After a stomach stapling operation failed, Maradona headed to the Dolomites to try out a new weight loss regime… It seems that he lost a lot more than he bargained for.

(Image in the public domain.)

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vick.jpg

In just a little under three hours, the Philadelphia Eagles will hit the field for the third of their four pre-season games. So far, they’ve given their fans nothing to cheer about. They have, however, given them plenty to talk about – not the least of which is the signing of former bad boy (and felon) Michael Vick.

Michael Vick, who pleaded guilty to “Conspiracy to Travel in Interstate Commerce in Aid of Unlawful Activities and to Sponsor a Dog in an Animal Fighting Venture”, is set to make his Eagles debut tonight against the Jacksonville Jaguars. The debut follows a conditional reinstatement for Vick by NFL Commissioner Roger Goodell.

Several teams expressed interest in Vick who had made quite a splash in the NFL during his early tenure. He still holds records for the most rushing yards by a quarterback in a single season (1,039 in 2006), highest average per carry in a single season (8.45 in 2006), 100-yard career rushing games by a quarterback (eight), best two-game rushing total (225 in 2004) and rushing yards in a single game (173 in 2002). But in a move that stunned almost everybody (including this Eagles fan), the Philadelphia Eagles signed Vick to a 2 year contract. Yeah, I thought he was going to the Steelers, too.

As it turns out, it’s a move that the Eagles could have received some tax benefits for… The Eagles could have recuperated some of the $1.6 million contract with Vick via a $10,000 tax credit offered to employers by the Mayor’s Office for Re-entry of Ex-Offenders (MORE). The credit was added to the existing program (which includes opportunities for education and job training) to encourage businesses to hire ex-offenders. So far, reportedly only six businesses have taken advantage of the credit. Would the Philadelphia Eagles be lucky #7 (ironic, since that’s Vick’s Falcons number)? Not this time. A team spokesperson told the Philadelphia Daily News that wasn’t going to happen.

But the move has put a new emphasis on the tax credit. According to the Mayor’s Office, there are approximately 298,400 adults living in Philadelphia who have a criminal background and who are technically ex-offenders. That’s more than a quarter of a million people. A quarter million potential employees. A quarter millions potential taxpayers. A quarter million potential actual contributing members of society.

Or we could just continue to pump money into the prison system by choosing to pretend that it’s not a problem (approximately 40% of offenders go back to jail, as high as 70% in California).

Philadelphia is opting for the former and choosing to believe in second chances – in more ways than one. Statistics suggest that ex-offenders with sustainable jobs remain ex-offenders, a finding that isn’t lost outside of Philadelphia. Kansas, Illinois and Iowa are just a few of the states that offer similar programs. The feds also offer an incentive in the form of a Work Opportunity Tax Credit. A business which hires a qualified ex-felon (defined as “an individual who has been convicted of a felony and has a hiring date which is not more than one year after the last date on which he was so convicted or released from prison”) may be entitled to a federal tax credit in the amount of $2400. Other target groups, including disabled vets, are also included in the program. George W. Bush re-authorized the bill in 2006 and expanded in 2007, once remarking, “America is the land of the second chance – and when the gates of the prison open, the path ahead should lead to a better life.”

While the Eagles take a pass on this tax break, maybe other local employees will give it a second look.

But for tonight, are you ready for some football?

Hat Tip: @jmnaylor via Twitter

(Image by Keith Allison from Baltimore, USA under Creative Commons Attribution ShareAlike 2.0 License)

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taxgirl is a hypocrite

14 August 2009

Earlier today, I wrote this post wherein I more or less insinuated that I believed that Daniel Andersen might be inclined to tout his tax evasion nonsense again, despite being caught and serving time in a California federal prison.
A few hours earlier, I had been tweeting away about the signing of Michael Vick with my [...]

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New Orleans Saints Players Involved in Tax Credit Loss

5 July 2009

As previously blogged, film tax credits may be popular in many states, but in Louisiana, there are at least 27 members of the NFL’s New Orleans Saints who are not yet ready for their close up.
A number of people associated with the team including Kevin Houser, Drew Brees, Sean Payton, Archie Manning (dad [...]

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Castroneves Ends May With Two Big Wins

26 May 2009

It turns out that May was a pretty good month for Helio Castroneves.
On last Friday, the last remaining criminal charge against Castroneves – for conspiracy – was dropped. The month before, Castroneves was acquitted of six counts of tax evasion; the jury did not reach a verdict on the conspiracy charge. The feds [...]

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Twitter Tax Tips #13

15 March 2009

Filling out those tourney brackets? Remember that your winnings (and all gambling winnings) are taxable! #TwitterTaxTip
(For more on twitter tax tips, see my prior explanatory post.)

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Castroneves Dances His Way Through Court

9 March 2009

On the day that the new season of “Dancing With the Stars” debuts, the former DWTS champ did some fancy footwork of his own in his first day of court. Helio Castroneves and his sister Katiucia Castroneves, together with their lawyer, Alan Miller, faced prosecutors on the first day of a federal tax trial [...]

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Fore! Golfer Hit With Tax Evasion Charges

24 February 2009

Pro golfer Jim Thorpe is facing a new challenge these days: allegations that he did not pay $1.6 million in federal taxes. Thorpe is accused of failing to file and pay taxes on income he earned in 2002, 2003 and 2004. Altogether, Thorpe faces four counts of failure to file an income [...]

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