https://twitter.com/StephenEspinoza/status/1104098334250360833
In order to accurately evaluate and discuss this issue, you'd have to know what all the top-tier boxers are actually earning - and there is no accurate public source for that. As we all know, athletic commission disclosures don't always reflect all sources of income.
That would be impossible to enforce. Then there's the tax treaty where if you pay income tax in one country you don't have to in another.
Yes, you're right. It's impossible to enforce. That's why fighters file misleading numbers. You're also right that there are tax treaties and Joshua will get tax credit in the UK for taxes paid in the US for US events.
What you're wrong about is thinking that the US won't collect taxes from a US event simply because the company paying the purse isn't a US company. That's just not how it works. Best of luck to you, I hope you have a wonderful day, you just happen to be wrong on this facet of the issue.
- -Most everything in boxing is smoke and mirrors.
The only thing real are the fighters, but sometimes even they succumb to the lure of smoke and mirrors.
That would be impossible to enforce. Then there's the tax treaty where if you pay income tax in one country you don't have to in another.
Robbie, I know how the bold works. When I worked in Korea and paid taxes there, I didn't have to pay taxes back home. So, Joshua, will be taxed in the US, not in the UK. That's how this one works.
You think the US taxes money made in other countries if the event was held in the US? You think Tyson Fury paid US tax on the money he made from UK PPV? You think Canelo pays US tax on money he made in Mexico? :rofl:
Yes, that is how taxes work. Whatever Fury was paid for work he did in the US, the IRS is going to want their piece. Foreign rights to a performance that took place in the US are taxable under US law.
If you want to argue what the law should be, by all means we can have that discussion as long as you're polite and civil.
But if you want to argue what the law actually is, you need to do a little research before you try to act like you're an expert on US tax law. I literally posted the IRS website for you. It clearly states income from any performance or revenue related to that performance is taxed by the IRS.
The revenue isn't being generated by the US though. Joshua is getting paid by DAZN a UK company who's revenue comes from multiple countries, not just the US. Joshua isn't getting a split of the revenue either. So his purse isn't generated in the US at all.
Okay, you keep saying that, but that isn't what "US source revenue" means. What it means is that the performance took place in the US and revenue connected to a performance that took place in the US.
It says US source income you ****ing idiot. Joshua's money isn't coming from a US source. What don't you understand about that?
Not sure why you're swearing at me. I'm very kindly trying to help you. Yes, it says US source income and then it explains what US source income is:
This includes compensation for performances, endorsements, the sale of merchandise, and royalty, or other, income closely related to the event.
Compensation for the performance and other income from the event = US source income.
If the event takes place in the US, your compensation for performing at the event = US source income. Has nothing to do with whether a US company is paying you. You're doing business in the US. The revenue is being generated from an event taking place on US soil.
You should consider being more civil when having a discussion with another human being.
If you are a foreign athlete and/or entertainer performing independent personal services in the United States, you must generally pay U.S. income tax on your U.S. source income.
DAZN aren't a US source. They're a UK company paying a UK fighter. The money won't go through the US system.
If you are a foreign athlete and/or entertainer performing independent personal services in the United States, you must generally pay U.S. income tax on your U.S. source income. This includes compensation for performances, endorsements, the sale of merchandise, and royalty, or other, income closely related to the event.
So no, you can't come fight in the US and not pay taxes on the income. Doesn't matter if the company paying you is a foreign company. I don't know you at all and maybe you're a nice guy, but you're wrong on this issue.
The US can only tax money made in the US or if you're a citizen. Joshua and his purse are neither.
https://www.irs.gov/individuals/international-taxpayers/taxation-of-foreign-athletes-and-entertainers
Pacquiao is different. His money went through the US system. PPV/Network/Promoter. The US can only tax money made in the US or if you're a citizen. Joshua and his purse are neither.
The fight is taking place in the US. The money is made in the US. Americans pay subscription to DAZN.
Anyway, it's not important to me, either way. Just wondered.
I remember people saying Pac, a non-citizen boxer, owed money to the IRS from his fights. I'm ignorant in this area.
No, you have it right. It's the other guy that's ignorant in this area.
Joshua isn't a US fighter and DAZN aren't a US company. Joshua's purse won't be put through the US system. :dunce:
In the US, you have to tell the commission what your purse is because you have to pay a percentage of your purse to the commission.
Joshua isn't a US fighter and DAZN aren't a US company. Joshua's purse won't be put through the US system. :dunce:
If you work in the US, you have to pay taxes. Is it different for fighters from overseas?
The IRS are NOT stupid. All these we pay them 5m and we are actually paying them 20m under the table is just BS. Unless their actual purse was 5m and they are just talking about 20m for future negotiations reasons then fine.
I know what you are saying, but how would the IRS prove if the rest of the money was paid to the fighter in cash?
I never bought Pac actually got 20 in that fight. I thought the 6 was it. I don't really believe some of these outlandish money claims.
The IRS are NOT stupid. All these we pay them 5m and we are actually paying them 20m under the table is just BS. Unless their actual purse was 5m and they are just talking about 20m for future negotiations reasons then fine.
So what should we expect Joshua's filed purse to be in New York on June 1?
I remember people talking openly about Pac getting paid around 20 mill, but the reported purse to the athletic commission was only 6 mill, if I remember right.
Don't think the IRS did anything. I think that's because Arum could easily say he was just lying to get Pac more money in future fights vs Floyd and others. Hard to prove.
The IRS are NOT stupid. All these we pay them 5m and we are actually paying them 20m under the table is just BS. Unless their actual purse was 5m and they are just talking about 20m for future negotiations reasons then fine.
This is exactly it. Absolutely spot on..
I remember people talking openly about Pac getting paid around 20 mill, but the reported purse to the athletic commission was only 6 mill, if I remember right.
Don't think the IRS did anything. I think that's because Arum could easily say he was just lying to get Pac more money in future fights vs Floyd and others. Hard to prove.
insecurity probably why he said this
worried about other companies coming in and paying more
why would you say this?
irs might be taking closer look now
This is exactly it. Absolutely spot on..