Domestic tax Regimes, foreign athle- tes and benefits of OCED Article 17 for sports contracts.

In the UK the resident athlete is subject to British taxes on any income and capital gains on their worldwide earnings generated in the tax year, irrespective of where in the world the income or gains arose. The UK tax system is based on the principles of “residence” and “source” which means that if someone is a “resident” in the UK then they are subject to income tax rates in the country; however for non British residents the national taxation will apply if they have a “sour- ce” of income that is generated within the UK, and which does not draw the relief under the dou- ble tax treaty. This means for sportspeople who compete internationally even if they do not live in the UK their revenue will require tax planning and structuring, and the evaluation of the inco- me and outgoings from participation in events. There is much scope for creative structures after the implementation of the Organisation of Economic Cooperation and Development (OECD) Ar- ticle 17(2), that allows the Double Treaty Taxation in the field of sport. The argument that this is a provision that offers a fairer option for foreign athletes who are participating in sports events in the UK.