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Tax Office win for players

Discussion in 'Rugby League Forum' started by ManlyBacker, Jun 19, 2009.

  1. ManlyBacker

    ManlyBacker Winging it Staff Member

    +972 /7
    CHUNKY rake Mark 'Piggy' Riddell has never knocked back a good feed - and yesterday he delivered a bigger slice of pie for every footballer by scoring a landmark High Court win.

    Last week, we revealed Riddell was taking the Australian Tax Office all the way to the top of the judicial tree in his quest to make player management fees exempt from tax.

    His case was heard in Canberra yesterday, signalling the end of a four-year legal stoush. And the verdict was unanimous, with the High Court bench ruling agency fees are tax deductible.

    The result represents a huge windfall for not just NRL players but all athletes.

    Riddell launched proceedings over a $21,175 management fee for one season alone - and he wasn't even close to the NRL's top earners.

    The astronomical salaries of Johnathan Thurston, Greg Inglis and Darren Lockyer are now set to soar even further thanks to Riddell, with all now entitled to claim their standard 7.5 per cent management fee back on tax.

    When you're talking salaries in excess of $500,000, it's a significant bonus.

    What's more, all players are now entitled to claim their agency fees retrospectively to 2005, when Riddell launched his case.

    Some are expected to be handed back more than a $100,000 windfall from the tax office as a result - not a bad "Piggy'' bank.

  2. swoop

    swoop Well-Known Member 2017 Tipping Competitor

    +1,541 /26
    Orford might be able to top up his contract by claiming the agency fees. He was on big bucks, so he should recoup a few dollars.

    The question is though, will it count in the salary cap???
  3. SilentBob

    SilentBob Well-Known Member

    +4 /0
    It's already counted in the cap.
  4. ManlyBacker

    ManlyBacker Winging it Staff Member

    +972 /7
    I can't believe the ATO brought this to court. A set percentage against income earned looks to me as clear an example of an allowable deduction as I can think of. There cannot be any deliberate loading to the agencies as the player's incomes are tied within a salary cap structure.
  5. Zep

    Zep Active Member

    +8 /0
    If i get back the money i paid for a laptop because i am in IT, i can't see why the Players shouldn't get money back from Management fees. It is an expense after all that secures them there job.
  6. Garts

    Garts Well-Known Member

    +843 /25
    I can not believe this was not an allowable deduction in the first place.  

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