If you thought Rory McIlroy’s pre-Masters legal distractions were behind him after last week’s $20 million-plus settlement with former management Horizon Sports, you’d be wrong. The Ulsterman is cited (along with Graeme McDowell) in a U.K. tax probe, which could have serious financial ramifications.

At issue: potential dubious dealings by programs Rory McIlroy and Graeme McDowell invested in. Thus, the duo is only potentially engaged in disreputable behavior by association. Valhalla Private Client Services allegedly “unfairly exploited incentives designed to boost run-down city centers, under which the investors could claim tax relief,” according to a story in the Mirror.

One such property: the Titanic Hotel in Liverpool.

[quote_box_center]“Golf star Rory McIlroy and other investors could be hit with accelerated payment notices (APN) after collectively investing £10m in the scheme which helped fund the new Titanic Hotel complex in Liverpool’s docklands,” according to a report in the Liverpool Echo. [/quote_box_center]

HMRC is investigating whether the schemes unfairly avoided tax by exploiting the Business Premises Renovation Allowance (BPRA) programme, under which investors can claim up to 100 percent tax relief on expenditure.

In 2013, after the Coalition extended its run to 2017, Treasury Minister David Gauke warned many BPRA funds were unfairly exploiting these tax advantages, branding them “seriously flawed.”