Sir Chris Hoy defends tax arrangements
Published: 23rd Jun 2012 14:23:00
Olympic cyclist Sir Chris Hoy has defended his tax arrangements after it was reported that he received a loan from his own company.
Sir Chris, who is to carry the Olympic flame in Manchester, said neither he nor his company disguised remuneration.
He also said he takes his responsibilities as a taxpayer "as seriously as I do as an athlete".
The 36-year-old said: "Everything I have done is as a UK resident, and is UK taxable and not offshore."
The athlete was responding to claims made in the Guardian about his tax affairs.
Sir Chris, who is Britain's most successful Olympic cyclist, did say that he took a loan from his company Trackstars Limited in 2010, but said it was repaid in full in October 2011. He said the practice is standard in most small companies in the country.
"The dividends that I took to repay the loan were in fact taxed at the highest rate," he said.
"I saw an opportunity to buy property and with the guidance of my advisers I borrowed money from my company to do so. The loan was subsequently repaid shortly thereafter by declaration of fully taxable dividends."
Sir Chris has previously received lottery funding, but this ended in October 2008.
"I am very proudly British and my responsibilities as a British sportsman do not stop once I step off the bike," he said.
"I take my responsibilities as a taxpayer as seriously as I do as an athlete."
Sir Chris's comments come after comedian Jimmy Carr faced the public following revelations about his tax arrangements.
He appeared onstage at the Stockport Plaza for a live comedy gig, and the latest episode of his TV panel show, Eight Out Of 10 Cats, was broadcast on Channel 4 on Friday.
Mr Carr has said he "made a terrible error of judgement" by using the K2 tax avoidance scheme and has now ended his involvement in it.
The K2 tax scheme is a way of lowering the amount of tax paid. It is legal and Mr Carr made clear in his statement it was fully disclosed to tax authorities.
Prime Minister David Cameron had called Mr Carr's use of the arrangement "morally wrong".
More than 1,000 people are thought to be using the Jersey-based K2 scheme, which is said to be sheltering £168m a year from the Treasury.
At 00:59:22 in PoliticsA "badly managed" Home Office scheme resulted in asylum seekers being placed in "unacceptably poor" housing, the Public Accounts Committee has said.
At 00:48:17 in HeadlinesSouth Sudan's President Salva Kiir has sacked the head of the army.
At 00:39:06 in EnglandThe decline of some regional English dialects has been mourned for years but now sign language is being hit by the same trend. Researchers say regional variations that produced 22 different ways of signing the word "purple" are dying out.
At 00:29:16 in HeadlinesFormula 1 boss Bernie Ecclestone is set to appear at the start of a trial on bribery charges in Munich.
At 00:16:58 in BusinessEnergy grids across the world are struggling to cope with a surge in demand for electricity and increasingly volatile supply from renewable power sources.
At 00:11:50 in SportEighteen-time US Olympic swimming champion Michael Phelps says concerns about weight gain were behind his decision to return to the sport.
At 00:09:32 in BusinessBeckford's Tower stands proudly on the hills overlooking the spa city of Bath, a monument to eccentricity and wealth.
At 00:01:40 in TechnologyDrones are becoming more common in our skies, performing a variety of tasks, from taking photos to monitoring crops and potentially even delivering broadband.
At 00:01:37 in HeadlinesBritish counter-terrorism police chiefs are making an unprecedented appeal to Muslim women to urge men against travelling to possibly fight in Syria.
At 23:52:22 in SportA turbulent three days for Manchester United has ended with them fending off allegations of unprofessionalism labelled against them by the League Managers Association (LMA).
Harvard CitationBBC News, 2012. Sir Chris Hoy defends tax arrangements [Online] (Updated 23rd Jun 2012)
Available at: http://www.ukwirednews.com/news/1436497/Sir-Chris-Hoy-defends-tax-arrangements [Accessed 24th Apr 2014]
News In Other Categories
Energy grids across the world are struggling to cope with a surge in demand for electricity and increasingly volatile supply from renewable power sources.
US actress Jodie Foster has married her girlfriend, Alexandra Hedison, the actress' representative confirms.
Drones are becoming more common in our skies, performing a variety of tasks, from taking photos to monitoring crops and potentially even delivering broadband.
Griff Rhys Jones has withdrawn from becoming Cardiff University's new chancellor just two weeks after an embarrassing debacle which saw his appointment halted at the last minute.