Football
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UK tax authorities arrest 'several men working within professional football'

The British tax authorities have arrested "several men working within professional football" after co-ordinated raids of premises in the north east and south east of England on Wednesday.

Nearly 200 officers from HM Revenue and Customs (HMRC) took part in the raids, seizing computers, mobile phones and paperwork, with the French authorities making similar raids and arrests at locations in France.

Press Association Sport reports that one of the raids was on Newcastle's St James' Park ground and the club's managing director Lee Charnley was among those arrested.

It has also been reported that the London Stadium was raided and a West Ham spokesperson said: "The club is cooperating fully with HMRC to assist their enquiries. No further comment will be made at this time."

HMRC officials also visited Chelsea on Wednesday, requesting information. No items were seized.

Press Association Sport reports that there is no allegation of wrongdoing by anyone associated with the Premier League leaders.

A Chelsea spokesman said: "In connection with its wider investigation, HMRC has requested certain information which the club will provide."

In its statement, HMRC said: "HMRC has arrested several men working within the professional football industry for a suspected income tax and National Insurance fraud.

"180 HMRC officers have been deployed across the UK and France today. Investigators have searched a number of premises in the north east and south east of England and arrested the men and also seized business records, financial records, computers and mobile phones.

"The French authorities are assisting the UK investigation, have made arrests and several locations have been searched in France.

"This criminal investigation sends a clear message that, whoever you are, if you commit tax fraud you can expect to face the consequences. As this is an ongoing investigation HMRC is unable to provide any further detail at this time."

Four people have been arrested and 10 raids have been carried out by French authorities as part of the ongoing enquiry into alleged fraud.

France's National Financial Prosecution Service (PNF) did not give details of its raids, nor which transfers were potentially involved, but did state that 32 investigators had been used as well as local police services in the biggest development since HMRC requested their collaboration in late July.

L'Equipe reported that no Ligue 1 clubs who had had dealings with West Ham or Newcastle in recent years had been raided, and said no team had been asked for information from authorities on the matter.

France has the most players of any country outside the UK at Premier League clubs. Newcastle, who have just clinched promotion back to the top flight, have been involved in 13 deals with French clubs since 2012-13, while West Ham completed six such transfers in the same timeframe.

An HMRC spokesperson told ESPN FC that no names, locations or any other details have been confirmed, but added that no police forces were involved.

In December, HMRC head of enforcement and compliance Jennie Granger told a parliamentary committee that it was investigating the issue of image rights.

Earnings from image rights are treated as a separate income stream from cash taxed at domestic rates for playing for a team. Players can pay different tax rates on image rights earnings from commercial deals.

HMRC has questioned clubs and players in the past when a player lacking a public profile claims that significant earnings are from image rights.

Andy Wood, a director at Enterprise Tax Consultants, said he felt the dramatic move by HMRC showed how keen the authorities are to make examples of those suspected of tax evasion.

Speaking to PA Sport, Wood said: "In my opinion, HMRC is being very bold in describing this as fraud from the outset, as that is a criminal offence and potentially carries severe penalties for individuals it can prove have been guilty of such activity.

"However, the Revenue has not been shy of late in making clear its desire to tackle high-profile figures and companies it believes are avoiding or evading tax, partly because of the deterrent effect.

"In football, that has been certainly the case following HMRC's clamping down on the use of employee benefit trusts of the sort which were at the heart of Rangers' liquidation in 2012 and the recent hearing in the Supreme Court.

"As well as HMRC getting tougher with those even suspected of impropriety, the investigation involving Newcastle and West Ham provides yet more evidence of how its international reach in trying to bring tax evaders to book is continually being increased by co-operation with foreign tax authorities."

Information from The Associated Press was used in this report.

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