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Feb 10
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AFLPA Tax Test case success
The High Court of Australia today determined that Player Agent Fees for negotiating a new Playing Contract when a Player changes clubs are tax deductible.
The unanimous High Court decision was made following presentation of an AFL Players’ Association ('AFLPA') and Australian Athletes’ Alliance ('AAA') sponsored Test Case before the High Court of Australia, involving former AFL player David Spriggs and NRL player Mark Riddell.
The High Court of Australia (’HCA’) ruled that both players could claim a tax deduction for the Player Agent Fees incurred when negotiating for a new Playing Contract when the Players changed clubs.
The decision effectively clears the way for players to obtain a tax deduction for Player Agent Fees paid when negotiating a new Playing Contract when the Players changed clubs.
Prior to the HCA decision, Player Agent Fees for negotiating an extension to an existing Playing Contract were tax deductible.
Further, Player Agent Fees incurred for securing sponsorship, endorsements and appearances were also tax deductible.
However, the Australian Taxation Office ('ATO') previously denied a deduction for Player Agent Fees for costs incurred in obtaining a new Playing Contract with a new club.
Commenting on the decision Chief Executive Officer of the AFLPA and Director of the AAA Brendon Gale said that he was extremely pleased with the favourable decision.
“We are particularly pleased that after a number of years of prosecuting our case on behalf of our members before all relevant authorities, that the High Court has ultimately determined that our arguments had merit and that our case should prove successful. This decision will provide a positive benefit to all our members and indeed all other professional sports people.”
“Importantly I would also like to thank our legal team and their advisors for their successful advocacy and the ATO for accepting these matters as test cases. Today's outcome would not have been possible without the assistance of the ATO in agreeing with us that the tax law required clarification in this very important area. I would also like to thank both David Spriggs and Mark Riddell for their involvement.”
| Attachment | Size |
|---|---|
| AFLPA High Court Player Agent Fees_18_6_09_FINAL.pdf | 27 KB |
| Agent Fees Deductibility_ 10 year detail.pdf | 134.15 KB |
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