Sport Golf

Thursday 21 March 2019

McIlroy management insist 'Dubai tax exile' tag is wrong

Rory McIlroy's back-room team have described a weekend report that the World No 1 has become a ‘tax exile’ in Dubai as inaccurate (SPORTSFILE)
Rory McIlroy's back-room team have described a weekend report that the World No 1 has become a ‘tax exile’ in Dubai as inaccurate (SPORTSFILE)

KARL MACGINTY

Rory McIlroy'd back-room team have described a weekend report that the World No 1 has become a 'tax exile' in Dubai as inaccurate.

McIlroy's primary address is listed in recent official documents as the Adriatic Building on the Palm Jumeirah in Dubai, a change from the address in Monaco the Holywood native gave during his Commercial Court dispute with his former management company.

Monaco and Dubai both are acknowledged tax havens but a spokesperson for McIlroy last night insisted that "the characterisation of Rory as a tax exile is wrong.

"He has chosen to have the bulk of his commercial income taxed in his Irish company, which stands in stark contrast to many other global sports stars and notable Irish figures," the spokesperson insisted.

McIlroy's decision means he will pay 12.5pc company tax in Ireland on royalty payments from his endorsement deals with Nike, Omega, Bose and EA Sports Computer Games, which will amount to hundreds of millions of Euro over this career.

This represents the larger part of his earnings and has been described by McIlroy's back-room staff as "good news story for Ireland, without any catches."

Prize-money, tour win-bonuses and appearance fees will not be treated as part of the Irish company's revenue because they are categorised as income and are taxed under regulations in the country in which they are won and, of course, where the individual resides.

"Rory's personal tax residency in Dubai makes perfect sense," explained the spokesperson.

"He circles the globe in the course of his business and doesn't fulfil any of the Irish, UK or US tax residency requirements. Rory spends significant time in Dubai as the perfect training base outside of the US Majors season."

McIlroy's links with the tax-free Emirate are strong, illustrated by his successful invitation to Dubai Duty Free to sponsor the Irish Open, of which he is patron through his own charitable foundation.

Irish Independent

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