McIlroy, McDowell linked to U.K. tax probe
Rory McIlroy and Graeme McDowell have been linked to a tax investigation in the United Kingdom related to investments made on their behalf.
The Mirror reports the HMRC, the U.K.’s tax collection agency, is investigating potential abuse of tax credits offered for investments made in areas of urban blight by a firm called Valhalla Private Client Services using money supplied by McIlroy and McDowell, as well others.
The report does not claim either of the golfers, or the other investors, had knowledge of the potential abuse, which may have included overstating an individual’s investment in a project after combining their funds with bank loans.
The HMRC could compel the investors to pay taxes on the invested dollars that were exempt from taxation using what’s called an “accelerated payment notice.” That notice would require the investors to pay 70 percent of the tax credits within 90 days of its issuance. The money could be refunded if the investigation proves the investments were in compliance with the tax credit program.
For McIlroy, this investigation comes on the heels of reaching a settlement in parallel lawsuits with former agents Horizon Sports Management related to commissions when the Dublin-based firm represented McIlroy. McIlroy reportedly agreed to pay Horizon somewhere in the area of $20 million to settle the suits. McDowell, who was represented by Horizon until the end of 2014, recruited McIlroy to the agency. Both men now have their own management companies to represent their affairs.
Ryan Ballengee is a Yahoo Sports contributor. Find him on Facebook and Twitter.
