Cincinnati Tax Resolution Powered by Toph Sheldon 9200 Montgomery Rd., Ste. 7B Cincinnati, OH 45242
PRST STD US POSTAGE PAID BOISE, ID PERMIT 411
513-513-8674 513TAX.COM
INSIDE 1
Daddy’s Home! Toph’s Pursuit of Better Work-Life Balance
2
Engage Your Kids With Fun Gardening Projects Meet Shanti Steffen, Our New Associate Ashley’s Corner: A Quest for Quality Time With Kids Not Your Mom’s Corned Beef and Cabbage
3
4
Harry Potter Star Hit With $2.3 Million Fine
EVEN WIZARDS MUST PAY TAXES TOPH’S TAX NIGHTMARES
You would think that a wizard conjuring up a clever tax dodge favored by megastars of the entertainment world could successfully evade tax authorities.
is 36, earned an estimated $29.5 million by co- starring in all eight “Harry Potter” films.
In England, the maximum tax rate on long-term capital gains in one recent tax year was 20%, compared with a top marginal income tax rate of 45%.
You would be wrong. A cagey tax dodge by a beloved “Harry Potter” co- star has brought the wrath of British tax officials raining down on his head.
Rupert Grint, who played the loyal, winsome Ron Weasley in the “Harry Potter” film series, was nabbed by British tax officials and fined 1.8 million pounds, the equivalent of $2.3 million, for misclassifying residuals from the films as a capital asset rather than income. The residuals, valued at about 4.5 million pounds or $5.5 million, included TV syndication, DVD sales, and streaming rights, The Associated Press reported. That ruse resulted in a much lower tax rate. A British judge ruled that since the bulk of the cash arose from Grint’s work as an actor between 2001 and 2011, it had to be classified as income. Grint was ordered in 2019 to pay taxes the government said he owed as of 2012. His lawyers appealed the ruling, leading to years of wrangling, until Judge Harriet Morgan entered her order last November. Grint, who
The same financial loophole claimed by Grint was also used by The Beatles to reduce taxes on their millions in earnings. British tax officials repeatedly cited the “Beatles clause” in
referring to the strategy. In both cases, the performers formed separate companies and sold the rights to their work as capital assets, then claimed the income as capital gains, according to Entertainment Weekly. In his defense, Grint argued that he did not understand the extent of the tax evasion that had occurred. In her ruling, the judge supported Grint’s claims that his father and his accountants had mismanaged his financial affairs.
4 • 513-513-8674
DON’T LIVE IN FEAR - TOPH IS HERE!
Made with FlippingBook Ebook Creator