Australian Taxation Office investigating AFL stars over tax rorts
Ben Packham | January 29, 2009
EXCLUSIVE: CASHED-up AFL players are claiming tax deductions for personal grooming, flash suits and the cost of attending A-list parties.
Some of the league's biggest stars are believed to be among those being investigated by the Australian Taxation Office for tax rorts.
Investigators say some were wrongly claiming deductions for "image and appearance".
"In some cases, conventional clothing was being claimed as a deduction," an ATO spokeswoman said.
"Some costs of attending social functions were being claimed."
They also queried players' claims for deductions for fuel and mobile phones, agents' fees, massages and private health insurance.
The tax records of 80 elite footballers from all the major codes are under the spotlight.
The players, who the ATO refuses to identify, know they are being audited.
None has been prosecuted.
The audit of football players comes amid a wider probe of 2000 elite sports people, including cricketers and Olympians.
The ATO said about 10 per cent of the athletes examined had failed to lodge their tax returns on time.
It told the Herald Sun: "During 2007-08, the Tax Office wrote to administrative bodies asking (them) to remind players and officials to lodge on time.
"All overdue returns are being pursued with priority given to those taxpayers with higher incomes, and/or numerous overdue returns."
AFL Players Association chief Brendon Gale said: "Every two or three years the ATO will audit professional athletes. That's all cool."
"Our players hope and expect that they comply with all the requirements.
The association is pursuing a High Court challenge over players inability to claim deductions for management fees.
The test case, by ex-Geelong and Sydney player David Spriggs, is due to be heard in March.
"We feel fairly strongly about the principle," Mr Gale said. "It's an expense related to their employment contract, for which they pay tax."
One prominent player agent, who did not want to be named, said expenses such as massage and health premiums should be deductible.
"We pursue what is fair and reasonable. These are really only costs that are incurred in the course of employment," the agent said.
http://www.news.com.au/heraldsun/story/0,21985,24977367-661,00.html
