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Posted by catmandoo (Member # 1284) on 02-25-2021, 05:48 PM:

Former Kentucky Basketball player Randolph Morris was indicted yesterday on federal charges for failing to report more than $13 million he earned while playing professionally in China from 2010 to 2017.

A federal grand jury in Lexington returned an 11-count indictment against Morris, who played at Kentucky from 2004 to 2007 before heading to the NBA, and eventually, the Chinese Basketball Association (CBA). If you remember your mid-aughts UK Basketball history, Morris actually declared for the 2005 NBA Draft, but after going undrafted, was able to return to the team when Tubby Smith found an old fax on his desk from Morris saying he only intended to test the waters instead of leaving for good and signing with an agent.

The wire fraud counts allege Morris submitted false income information to the Kentucky Department of Revenue, for the 2015, 2016 and 2017 tax years, when he played for the Beijing Ducks. By failing to report his income from the CBA during those years, the FBI says Morris deprived the state of Kentucky of more than $400,000 in tax revenue. The remaining eight counts allege that Morris failed to report his earnings from the Beijing Ducks on his federal 1040 and 1040A forms, for the years 2010 through 2017.

Morris faces up to 20 years in prison and a fine of $250,000 on each wire fraud count. For the counts of making false statements on tax returns, he faces a maximum prison sentence of three years. A date for his appearance in federal court has not yet been scheduled.

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Posted by PaulCat (Member # 513) on 02-26-2021, 07:36 AM:

I don't like this at all. He worked in a foreign country representing a foreign entity. Why in the hell should the USA be entitled to any of that money? If I was him I'd flee to a non-extraditing country and live out my days.

Posted by Tiptree (Member # 844) on 02-26-2021, 10:28 AM:

If you maintain your US citizenship, any money you make anywhere is the world is subject to US taxes.

Uncle Sam needs his money.

The only way to avoid this is to forego your citizenship. I think I would rather pay the taxes.

Posted by catmandoo (Member # 1284) on 02-26-2021, 10:33 AM:

It sure doesn't sound good just hope the court shows some leniency.

Posted by rlt4uk (Member # 3194) on 02-26-2021, 11:51 AM:

Some thing's just seem unfair.

Posted by ukcatfannfl (Member # 1425) on 02-26-2021, 10:21 PM:

Sorry Tip not true at all - many many contractors working overseas who are u.s. citizens pay zero u.s. income tax - trick is to work 300 days or so out of a year overseas and not come back until you do. Many Many contracts are structured that way to make it more lucrative to hire u.s. citizens to work overseas. In fact U.S. companies who have u.s. govt contracts do the same. i.e. hiring cops to train local (foreign) cops.

State dept has many contracts with private firms who work assisting Embassies overseas. They bid on the contract, hire their own people i.e. us citizens and work out the details i.e. part of contract is not paying u s income tax!

Posted by ukcatfannfl (Member # 1425) on 02-27-2021, 02:29 PM:

p.s. one of the main reasons that americans take these overseas jobs is because of the fed tax breaks!

Posted by Tiptree (Member # 844) on 02-27-2021, 04:04 PM:

Then why is Morris being indicted? He clearly lived in China... did he not stay away the required minimum of 300 days?

I know that if you LIVE abroad; i.e., you move there, then the rules are changed. But other than a few notable exceptions, the visa regulations make it very, very hard to do so for more than a a few months (usually three, sometimes six). Eventually, you will have to apply for some form of "permanent residency" to keep living and working in that country. At that time, your tax status changes and you pay taxes only to your "new" country.

So, if Morris did not stay in China for the required 300 days each year (implicit in the charges), somebody either gave him terrible advice or he willingly committed tax fraud. I imagine that he will not go to jail over this, unless he cannot pay his back taxes and penalties. There will likely be a settlement.

Posted by Tiptree (Member # 844) on 02-27-2021, 04:06 PM:

BTW, there are some countries where the rules are very different. Some middle-eastern countries are so starved for certain kinds of skills that they pay exorbitant amounts and give you huge tax benefits to entice workers to come there. Saudi Arabia, Kuwait, and UAE come to mind here. I have no idea what the deal with China might be. But those countries have worked out "tax treaties" with the US to allow it to happen. For the vast majority of countries, this is not true.

[ 02-27-2021, 04:07 PM: Message edited by: Tiptree ]

Posted by ukcatfannfl (Member # 1425) on 02-27-2021, 05:49 PM:

Tip u.s. citizens come under u.s. rules - i.e hundreds and thousands of u.s. contractors work overseas on contracts and they pay no u.s. taxes. Any foreign taxes are negotiated/paid by the u/s contractor.

I personally know of hundreds of people working for the state dept and also hundreds of cops (active and retired) who work overseas in some hard conditions who do so, because of the tax breaks..

Posted by MEL (Member # 141) on 02-27-2021, 06:38 PM:

No dog in this fight but the law is the law and if he was supposed to pay the tzxes then he should have end of story.
Like someone else said he either got terrible advice or just didn't want to pay his taxes.
I am guessing he didn't pay any taxes in China either but not sure on that.

MEL

Posted by ukcatfannfl (Member # 1425) on 02-28-2021, 07:47 AM:

Tip I suspect the reason Morris has to pay u.s. taxes as basketball contracts anywhere are not for the 300 some odd days a yr - only for the season and the visas are probably 6 month visas. Meaning you must come back to the U.S. to get it renewed and then tvl back prior to the start of the new b-ball season. One reason the players get large contracts like Morris did...