Why did Wilder turn down $7M to fight Whyte to take $2M to fight Ortiz?

He makes the double tax policy sound more clear cut than it is. It boils down to Jurisdiction, which either the U.K. or the US can take and often times even have disagreements over, and Wilder has no control over it Wilder's safest bet would be to pay the 45% in the U.K. and get a credit and take it back to the US and he should be good with US. However, taking it home to the US and only paying the local 39% tax is very risky, since the U.K. could make a later claim and Wilder would owe back tax plus interest.


Wilder's potential $4 million purse would require at least $1.8 million in taxes. That would put him back to what he makes normally in the US. At least with a $7 million purse Wilder would keep close to $4 million after taxes, which is why Wilder proposed the $7 million purse.

 

With 1.8 off of 4 that would still be 2.2 which is still more than 2.1 which it is claimed on the article, he made in his last fight and was claimed to be his biggest purse

Still if this is correct it does put an interesting spin on things

 

@sean

Can you shed any light?

 

Wilder's team are outright incompetent

He is losing MILLIONS every time he signs a fight.

He is lucky Povetkin got popped or his career would already be over and he'd be down tens of millions.

 

Ortiz HAD the reputation as the next KILLER in HW where Whyte has the name of.....Ummmm....Oh yeah the guy AJ sparked out

 

as an overseas boxer he is most probably exempt from the 45% as he would just fly in and fly out .
he would have to pay at most 1% tax in the uk then take his money home and pay 39 % in america.
this kicks in when you earn more than 440k approx in a usa tax year.
so total he would have to pay would be 40%
i
joshua/whyte ie uk based boxers have to pay 45% on the same money.

i dont know usa tax laws about vica versa on what overseas sportsmen have to pay to fly in /compete and then leave .

i am guessing because of the double taxation laws usa have a similar agreement as the uk
this is just a summise on my part though.

there are technical ways in both countries to offshore your earnings like big companys do.

 

Thanks for the info