Bolt outruns taxman

USAIN has bolted from competing in Britain because of a massive tax net which could capture huge chunks of the Jamaican superstar's earnings.

Britain, which has moved to mend its leaking economy, has instituted new regulations which the BBC said would have caused sprinter Usain Bolt to lose more money than he would earn from competing at the Crystal Palace Diamond League meet next month.

Athletes competing in the United Kingdom are liable for a 50 per cent tax rate on their appearance fee as well as a portion of their total worldwide earnings.

Britain bases its tax charge on the number of UK events athletes compete in. If Bolt were to take part in 10 meetings worldwide, with one in the UK, the British government could tax him on one-tenth of his worldwide earnings.

The UK's Daily Mail newspaper estimated Bolt's annual income to be around £6.6 million, or approximately J$840 million. It is estimated that Bolt could be liable to pay a few hundred thousand to the UK taxman should he run there this year.

Ain't gonna happen

The Associated Press has reported Ricky Simms, the agent for the record-holding Olympic and World champion over 100m and 200m, as having said competing in England would not be in the best interest of the Jamaican sprinter.

"Usain is possibly the first athlete to have endorsements at the level where he stands, but he would see his fees greatly diminish after taxes," Simms said.

Simms said it was unlikely Bolt would compete in Britain again unless the country changes its tax rules.

"He will earn a lot less by competing in Britain if he maintains his current endorsement level," he said.

"We are now hoping they will change the law," Simms added.

British tax authorities in 2006 won a case brought by tennis star Andre Agassi. It successfully argued that as well as the prize money he accrued, a proportion of Agassi's worldwide sponsorship income was also earned during his time in the UK and was, therefore, taxable.

Athletes shy away

But this glut for athlete earnings has reportedly caused many sport superstars to shy away from England. Golfer Sergio Garcia has cited the tax as the reason he has cut back on UK appearances.

According to the Daily Mail, Bolt wants to race in the UK. He is reportedly prepared to pay Britain's 50 per cent tax on the £166,000, or J$21 million, he is likely to receive as an appearance fee.

However, his advisers are unwilling to have him run there because of the hit to his pocket.

Meanwhile, the Government has agreed to waive its tax rule so London can host the 2011 Champions League final, and competitors in the 2012 Olympics are also exempt.

A battery of Jamaican athletes competed in England on Saturday, among them Asafa Powell, the former 100m world record holder.

It was not immediately clear yesterday if Powell and his MVP teammates have a problem with the UK laws, as Bruce James, president of the track club, said that was a matter for agents to decide.

The Gleaner was unable to contact any agent of top Jamaican athletes.