(Image: Warner Bros. Pictures)
British actor Rupert Grint, 36, known for his longtime role as Ron Weasley in the "Harry Potter" film series, has been facing a series of tax disputes in recent years. In 2019, Grint lost a lawsuit involving a £1 million tax refund, and late last month, he lost another years-long legal battle. According to the court's ruling, he must now pay an even larger sum of £1.8 million.
(Image: Warner Bros. Pictures)
His Majesty's Revenue and Customs (HMRC), which investigated Grint's tax returns, stated that the actor had misclassified as much as £4.5 million in residuals from his film work as capital assets rather than income. Residuals, which are backend profits from physical media, merchandise, and television and streaming licensing, are subject to a much higher tax rate when classified as income. The judge ultimately ruled that these earnings fall under the income category.
HMRC further drew parallels to a tactic used by The Beatles in the 1960s, suggesting Grint was attempting to exploit a similar tax loophole. In 2011, Grint established a company called Clay 10 Limited and sold the rights to his residuals to the company as a capital asset, thereby reducing his taxable income. As of March 2023, Clay 10's equity had grown to over £27 million. The Beatles famously set up a separate company and sold their music rights to it to lower their taxable income. However, Grint claims that his finances are managed by his father and accountant and that he was not personally involved in the arrangements.
via： The Telegraph