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Credit: Inside the MagicRupert Grint faces a substantial tax bill amounting to $2.3 million after losing a legal battle with the U.K. tax authorities. This financial obligation stems from a decision by H.M.
Revenue and Customs (HMRC) regarding his tax classification concerning residual income gained from his time as Ron Weasley in the iconic Harry Potter film series. Grint has accrued wealth from his acting career since the early 2000s.
The legal battle has its roots in a tax audit initiated by HMRC, which scrutinized the A Knock At The Cabin (2023) star’s tax returns dating back several years. After an extensive review, the agency concluded that he had misclassified approximately £4.5 million in residuals, which include earnings from DVD sales, television syndications, and streaming rights.
H.M. Revenue and Customs Investigation
The investigation revolved around how Grint categorized his income. HMRC argued that he had wrongly identified residuals as capital assets rather than income, a significant mistake given the differing tax implications tied to these classifications. Income from activities, including movie residuals, is subject to higher tax rates compared to capital assets.
Tribunal Ruling Against Rupert Grint
This week, Judge Harriet Morgan delivered a ruling against Rupert Grint, affirming HMRC’s position on the classification of his residual income. The tribunal judge stated that the funds “derived substantially the whole of its value from the activities of Mr. Grint” and are to be categorized as taxable income.
The judge’s remarks clarify the tax implications of Grint’s earnings and signify increased financial scrutiny for other celebrities.
Grint’s Earnings from Harry Potter
Rupert Grint is best known for portraying Ron Weasley in the celebrated Harry Potter films alongside Daniel Radcliffe (Harry Potter) and Emma Watson (Hermione Granger). The franchise, which spanned from 2001 to 2011, skyrocketed him to the spotlight and brought impressive financial rewards. Estimates suggest that Grint has amassed around £24 million from his involvement with the series.
Despite this impressive figure, Grint’s financial journey has not been without its pitfalls. He previously encountered issues with tax returns, including an unsuccessful attempt to claim a £1 million tax refund in 2019.
J.K. Rowling’s Potential Legal Battle
As Rupert Grint’s ongoing tax struggles make headlines, Harry Potter author J.K. Rowling could face a legal battle of her own. As the creator of the series, Rowling has also benefitted massively from the franchise’s success.
However, as the fantasy author exhibits increasingly transphobic behavior, some former fans refuse to support Wizarding World projects like Hogwarts Legacy and the upcoming HBO Harry Potter series.
Earlier this year, Rowling was named in a lawsuit from Olympic boxer Imane Khelif. Conservatives and trans-exclusionary radical feminists (TERFs) targeted the Algerian boxer after she won a fight against Italian boxer Angela Carini, who withdrew and refused to shake her opponent’s hand.
Rowling, Elon Musk, and other prominent figures online claimed that Khelif was a “man punching a woman,” even though the International Olympic Committee (IOC) found the boxer complied with all regulations to fight in the women’s competition.
After winning a gold medal, Khelif filed a cyberbullying and harassment investigation with the French authorities. The suit was filed against “unknown persons,” giving investigators the right to charge anyone on social media found to have cyberbullied Khelif.
However, Rowling was named directly in the filing as an example of the targeted campaign against the athlete. Punishment for those found guilty could include hefty fines or prison time.
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