Abstract
Professional soccer players tend to have a very short active career life span imposed by age and physical abilities. During this short period, they earn substantial income, which is sporadic. Consequently, the use of progressive tax rates to tax their income creates tax inequity as they are likely to pay more taxes than the other taxpayers who earn income evenly throughout their longer working lives. This study, therefore, aimed to explore and present alternative tax regimes that might result in equitable taxes for South African soccer players.
A qualitative research methodology and a comprehensive literature review were used to achieve this objective. The taxation of sportspersons in three jurisdictions, namely, Australia, Turkey, and Ireland, was explored. Australia uses the special professional income averaging method, Turkey uses the flat rate method, and Ireland uses the post-retirement rebate system to redress the problem of tax inequity. These are presented as potential alternative regimes that might be considered.
LIST OF KEYWORDS:
Income taxes; professional soccer player; canons of tax; equity; progressive tax rates.