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Tax gossip: Rihanna’s accountant hits back

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14th Aug 2012
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The former accountant of Bajan pop star Rihanna has fired back at the singer's lawsuit against them, saying the massive losses incurred during touring were all her own fault.

Last month Rihanna launched legal action against New York-based Berdon LLP claiming they lost her millions between 2005 and 2010, and over-charged on their commission fee, believed to be 22%.

According to legal documents seen by celebrity website TMZ.com, Berdon claim Rihanna agreed to the commission fee and signed an engagement letter that gave them permission to do so.

The firm has since urged the judge, who has yet to rule on the case, not to award the singer any compensation because it was her “own financial action or inaction that led to her money issues.”

The singer, real name Robyn Fenty, is seeking tens of millions of dollars in damages and lost revenue, claiming that Berdon collected exorbitant commissions even as they bungled her taxes.

Berdon is also accused of keeping incomplete records, losing track of royalties, and botching US and international tax filings.

As reported in the The Guardian the IRS is auditing the pop singer following three years of erroneous tax submissions.

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Bolt refuses to race in UK until tax laws are changed

14 August Olympic sprinting legend Usain Bolt has refused to compete in the UK again until the country changes its tax laws.

After Bolt won his last gold medal in the 100m relay, he spoke of why tax laws are stopping him coming to run in Britain: “As soon as the law changes I'll be here all the time. I love being here, I have so many Jamaican fans here and it's wonderful."

The Jamaican athlete objects to a law that sees him taxed on global sponsorship and endorsement earnings as well as any appearance fee, levied at the 50% higher earning rate, when he competes in the UK.

Glyn Bunting, a partner at Deloitte, told BBC Radio 4 that Bolt was invited to an athletics event with a £100,000 fee, but his management worked out that by the time they had allocated his sponsorship and endorsement income to the UK, "his tax liability in the UK would exceed his appearance fee".

Bunting said: "Usain Bolt will be paid a considerable amount of money to wear a particular brand of clothing or a particular type of racing shoe and HMRC wants its share of that income."

Replies (3)

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By Robert Hurn
15th Aug 2012 11:45

Usain Bolt

Why is he worried about the tax rate?  The tax man will never catch him

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By chatman
17th Aug 2012 12:05

Usain Bolt

Can't say I'll lose any sleep over his absence.

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By dwgw
17th Aug 2012 12:25

Absurd

There must be a better way for the UK to tax the UK earnings of international sportspeople and entertainers.  The Bolt case demonstrates that the current rules aren't working.

The result is a reduction in the economic activity surrounding the presence in the UK of such people and, no doubt, a reduced tax take. 

Time to rethink.

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