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Wednesday, 17 May 2006 |
American tennis star Andre Agassi must pay UK tax
American tennis star Andre Agassi cannot avoid paying UK income tax on endorsement deals and the Law Lords ruled he must pay tax on a portion of cash paid to him by the companies Nike and Head because he endorsed their products at Wimbledon and other British tournaments.
The Court of Appeal had earlier ruled that Andre Agassi was exempt because neither he nor the sports companies were UK-based, however, the Law Lords ruled foreign entertainers touring Britain must pay tax on money earned from deals like this.
The Revenue was concerned that, if it lost its appeal, it would have had to repay millions of pounds to entertainers and sports stars who had been touring in the UK since 1988.
The fact Nike and Head were paying money to Andre Agassi's American company, Agassi Enterprises Inc - rather than to the star himself - made no difference, the Law Lords ruled.
"Payments to foreign companies controlled by them are to be treated as payments to them," Lord Scott said.
Otherwise, payments of the tax would be rendered "to all intents voluntary", Lord Scott added.
And Lord Mance stated that there was "no incongruity" in entertainers or sportsmen being charged tax on money earned for endorsing products in Great Britain.
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Last Updated ( Friday, 19 May 2006 )
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