Diversity champion leaves…

If you are the diversity champion of an organisation with approximately 20,000 employees it’s probably best if you’re not bullying staff.

Deloitte’s (now ex) deputy chief executive and diversity champion Dimple Agarwal has resigned from her role after allegations of bullying by her were received from several staff members.

The British newspaper, the Telegraph first reported Ms Agarwal was facing multiple complaints from staff over inappropriate working practices.

Distressed staff alleged she was aggressive towards them on calls and in emails as well as demanding they work long hours including joining calls before dawn and late at night.

Before her resignation, Ms Agarwal had said that the physical and mental wellbeing of the firm’s employees during lockdown is a priority for Deloitte.

Deloitte UK boss Richard Houston reportedly said “I cannot comment on any of the allegations contained in the article. But, as I have consistently made clear, I’m absolutely committed to ensuring that everyone in our firm is treated with respect, and I will not tolerate behaviours or actions that are inconsistent with our global shared values.”

Ms Agarwal isn’t the only senior executive from the Big 4 to leave due to some awkward behaviour.

Last month, the UK chair of KPMG resigned from his role after telling staff to “stop moaning” about their working conditions during the pandemic and claiming unconscious bias was “complete crap”.

I’m not kicking a ball, I’m being looked at.

Professional footballers must have a great life. Playing football and earning significant amounts of money. Oh, and using some very clever tax advisers…

There are serious amounts of money being paid to some of the top footballers. Payments of in excess of £200,000 per week are fairly common (over £10 million per year).

This income doesn’t simply go into the tax return as salary. No, there are far more sneaky/clever [delete as you feel appropriate] ways of minimising the tax liability (or should I say maximising the after-tax income).

One of the methods used to minimise the tax is to make two types of payments to the player.

One would be for playing football whilst the other would be for “image rights”.

“What are image rights?” I hear you say.

Well, the basic idea is that the player would agree to let the football club use his image in any sponsorship or TV deals that the club has.

Without going into too much technical detail, the key difference from a tax point of view is that the payments made to the player for playing football would be classified as employment income and would be taxed at 45%.

Payments for image rights on the other hand would in effect be rental payments for an intangible asset. Players would assign their image rights to a company (where they could be the 100% shareholder) and the company would only pay corporation tax of 19% on the income.

With the globalisation of the Premier League, there are now numerous players who are not tax domiciled in the UK and if their image rights were channelled through a non-UK company they could potentially escape tax altogether.

Given the size of the payments involved there’s a lot of tax at stake and no doubt the tax authorities will be looking closely at these schemes.

In the meantime, most of the readers of this blog are not professional footballers but instead undertake far more interesting finance and accounting activities in an office. Why not suggest to your boss at your next pay review that you’d like image rights instead of a pay rise so that you can receive more tax advantageous rental income from an intangible asset via your personal company…