Commissioner of Taxation v Spriggs [2008] FCAFC 150

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v Spriggs [2008] FCAFC 150

INCOME TAX – professional footballers playing as employees of their clubs – incidental activities in the way of endorsements, media and personal appearances carried on as a business – fee paid to manager for negotiating playing contract – whether an allowable deduction Held: not an allowable deduction Income Tax Assessment Act 1936 (Cth) Income Tax Assessment Act 1997 (Cth) Federal Commissioner of Taxation v Maddalena (1971) 2 ATR 541 referred to Agassi v Robinson (Inspector of Taxes) [2006] 1 WLR 1380 cited Adamson v NSW Rugby League Ltd (1991) 27 FCR 535 cited Federal Commissioner of Taxation v Payne (2001) 202 CLR 93 applied Partridge v Mallandane (1886) 18 QBD 276 cited R W Parsons, Income Taxation in Australia – Income, Deductibility, Tax Accounting, 1985, The Law Book Company Limited THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA v DAVID RAYMOND SPRIGGS

VID 1187 of 2007

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA v MARK RIDDELL VID 1188 of 2007

GOLDBERG, BENNETT AND EDMONDS JJ

22 AUGUST 2008

MELBOURNE

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY VID 1187 of 2007

ON APPEAL FROM A SINGLE JUDGE OF THE FEDERAL COURT OF AUSTRALIA

BETWEEN: THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Appellant

AND: DAVID RAYMOND SPRIGGS

Respondent

JUDGES: GOLDBERG, BENNETT AND EDMONDS JJ

DATE OF ORDER: 22 AUGUST 2008

WHERE MADE: MELBOURNE

THE COURT ORDERS THAT:

1. The appeal be allowed. 2. Order 1 made in VID 314 of 2007 on 29 November 2007 be set aside. 3. There be no order as to costs. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules. The text of entered orders can be located using eSearch on the Court's website. IN THE FEDERAL COURT OF AUSTRALIA