The “Sir” David Beckham Controversy: Knighthood, Tax Evasion, What Canada Should Do?


This story is of great interest to me because it covers many areas which I feel passionate about. Taxes, Sports, Canada, and Social Media.

In this case, David Beckham, the former Manchester United and Real Madrid star, and husband to former Spice Girl Victoria was denied knighthood for his involvement in a tax avoidance scheme, however the presence of some leaked emails have really stirred the pot recently and caused damage to the Beckham brand.

A Unicef goodwill ambassador since 2005 – Beckham is furious that the leaked emails appear to show him as cynically using his charity work to curry favour with the honours committee and identifies his frustration with having to kiss up to the Queen in order to achieve his knighthood.

He is also furious that they depict him as demanding money from the United Nations children’s charity to pay for flights and hotels to visit its projects with children in places such as the Philippines and in one email he apparently complained about being asked to match the highest bidders at a Unicef auction in New York, stating: “Chloe asked me an outright which I was p***** . . . I don’t want to do it and won’t do it with my own money.”

He comes across as a petulant child.

The hacked emails were obtained by website Football Leaks which had, up to now, focused on exposing players’ contracts and third-party ownership arrangements considered illegal by FIFA.

Beckham and his advisors knew about the existence of these emails last year, and had obtained an injunction preventing a major British newspaper and others from publishing the information. Beckham was also the subject of blackmail, with the perpetrator asking for $1-million dollars from “Becks” in order to prevent the emails from becoming public.

The email hack is believed that have been executed on a server associated with Simon Oliveira – Beckham’s communications spokesperson – in 2015. The 2 had worked together for more than a decade.

Oliveira was also the spokesperson for another tax cheat, former Tennis player Boris Becker, which might be a coincidence, or might not.

In 2002, Becker became a convicted criminal after judges found him guilty of tax evasion. Becker was given a stiff punishment: a two-year prison sentence, suspended for three years, a 500,000 euro (£315,000) fine, and the entire cost of his trial after he pleaded guilty to evading about 1.7m euros tax by claiming to live in the “offshore” haven of Monte Carlo at a time when his main residence was really in Munich.

Beckham was nominated for knighthood by the head of the London 2012 Olympic Organizing Committee, Lord Sebastian Coe, however UK Tax authorities, HM Revenue and Customs, flagged Beckham’s involvement during a screening process and it seems that it was enough to block the proposal.

The couple got caught up in a £434million tax avoidance dispute.

Over a decade ago the Beckhams joined Inside Track Productions LLP, set up by notorious investment firm Ingenious.

David went on to invest in two further Ingenious tax schemes in 2005 and 2006. Along with 140 other Inside Track Productions investors, the couple have been hit with tax demands by HMRC.

Ingenious invested hundreds of millions of pounds through schemes aimed at backing the British film industry.

But the company claimed £1.6billion in losses – and clients, who were made partners of limited liability partnerships, were lawfully able to write off any losses from the schemes against their other income. Companies House records show Victoria and David are still listed as members of the LLP.

After a tax tribunal ruling last year, investors in Ingenious schemes have faced a bill for £434million in unpaid tax plus interest. Ingenious, of course, denies HMRC’s allegations and the sides are still in a legal dispute.

HMRC boss Jennie Granger said: “The schemes involved people claiming far more in tax than they invested.”

So what should Canada do, and how does this impact us?

Well, if the UK offers knighthood to their top political donators, and famous people around the world and it is viewed as an honour, its’ about time for Canada to step up to the plate and recognize our elites and respected Canadians.

Since “Sir” is already taken, we should consider another honour, maybe adding “Eh?” after someone’s name. So once the tax matters are resolved, someone like David Beckham could become David Beckham, eh?  That’s 100% Canadian!  And… If he gets his tax problems resolved, and his knighthood, he could become Sir David Beckham, eh?

Pretty awesome!

 

The moral of the story is this:

Pay your taxes, don’t slag people in emails, and be kind to everyone, all the time!

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Ontarians Open Your Wallets… Wide! Liberal Budget 2016.


Nine years, Ontario has elected Liberal governments and for nine years, the taxpayers in this once mighty province are facing a budget whiledeeply in debt.

In fact, when the Ontario Liberals unveil their budget today, it’s going to include some really fancy talking and no mention of increasing taxes, yet it’s the only way they can eliminate the deficit and put a stop to the massive debt.

How massive is the debt?

Ontario has the largest debt of any sub-national government in the world!

The world!

Taxpayers pay an astounding $11-billion dollars a year on interest on the debt. Think about how many unions could be paid off with those funds, gas plants moved or documents shredded…

The Wynne Liberals will likely blame the Ontario Conservatives, or the Federal Conservatives, but they have already started to leak the “tax” increases coming down the pipe for Ontarians, including 4.3 cents to the price of a litre of gas plus an increase of $5/month to our natural gas bill – in order to protect the environment, no less…

Where the rest of the “savings” come from is unknown at this time, however, healthcare and education are likely to take a big hit.

Additionally, while it’s great that grocery stores are able to sell wine, the Liberals are likely to set a new minimum price for that bottle through this budget and add additional taxes on top of it.

Here is a recap of the “highlights” of the budget:

  • Ontario’s net debt will hit $308 billion in 2016-17.
  • Ontario’s debt is the largest of any sub-national jurisdiction in the world
  • Ontario taxpayers are paying $11.8 billion in interest payments per year
  • Interest on Ontario’s debt is going to increase to $13.1 billion by 2018-19
  • University and college tuition will be free for students from families with incomes of $50,000 or less.
  • More than half of students from families with incomes under $83,000 will receive non-repayable grants (which exceed the cost of an average tuition).
  • A carton if cigarettes will increase by $3.00, effective at 12:01 a.m. Friday.
  • Taxes on tobacco rise at the rate of inflation each year over the next five years.
  • The minimum price for a bottle of wine rises to $7.95.
  • The LCBO will be increasing their mark-up on wine to compensate for the fact consumers can purchase them at grocery stores, so in June there will be a 2% hike, followed by 2% hikes in 2017 and 2018 with a 1% hike in 2019.
  • There will also be annual increases of about 10 cents in the tax on wine sold in private retail outlets, increasing from 16.1 cents to 20.1 cents over four years
  • The $30 fee for Drive Clean vehicle emissions tests will be eliminated in 2017-18 – not the test – just the out of pocket cost which taxpayers will be paying to the tune of $60 million/year.
  • Hospitals will get their first funding increase in five years, up $345 million, plus $12 billion over 10 years in capital grants for about three dozen major hospital projects
  • The threshold for seniors to be eligible for cheaper drugs rises from $16,018 to $19,300.
  • The Liberals have committed $333 million over five years to redesign and improve autism services.

 

So as the Liberals promised, the Liberals shall deliver.  Spend, spend, debt, deficit, spend…  To the highest debt in the world.

The Conservatives are going to have a huge headache cleaning this mess up in 3 years!