A large chunk of the money earned by Anthony Olaseni Oluwafemi Joshua from his victory over Jake Paul has been lost to huge tax payments he needed to make in United States of America and Great Britain.
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Sports247 gathered that Joshua was first subjected to making mandatory tax payments on his earnings before leaving USA, because the fight on Friday night took place in Miami, Florida.
Subsequently, the Nigerian-born pugilist, who fights under the flag of Great Britain, will have to make additional tax payments when he returns to his base in England.
Information on offer from tax experts in the United Kingdom revealed that the two-time world heavyweight boxing champion will be left with only ¾ of his earnings from his victory over the American social media influencer.
‘AJ’ got victory on Friday night by flooring Paul with a devastating right hand, but he had to wait until the sixth round of the contest after being left frustrated by the former YouTuber earlier on in the controversial fight.
As expected, it turned out to be a one-sided affair, with Paul tumbling to the canvas three times, then revealed at the end of it all that Joshua had broken his jaw in two places to snatch the knock-out verdict.
Many speculators suggested that Joshua banked approximately £69k per second, or £4.1m per minute, from the fight, with a total take home of £68.5m from the bout in God’s Own Country.
However, while a report by UK tabloid, The Sun revealed early this week that Joshua and Paul split £200m equally, elaborate research from AceOdds inferred that tax payments will reduce Joshua’s take home.
AceOdds noted that 37% of Joshua’s prize money, totaling approximately £25.6m, will head straight to the IRS and, despite Florida lacking state taxation, he remains subject to US income tax at the maximum rate.
The report pointed out: “A breakdown of that cost would be split between both the USA’s and UK’s tax authorities, with 37 per cent of his earnings going straight to the IRS to cover Joshua’s US tax burden.
“While there is no state tax in Florida, the United States government charges income tax at a highest rate of 37 per cent.
“With the fight happening on US soil, Joshua would be required to pay their share first … then liable to pay UK tax on global income, also at the highest rate of 45 per cent.
“But, having already forked out a hefty amount stateside, the amount owed would be the difference between his total UK liability and the US tax already paid.”
