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 IFA 2010 ROME: Article 17 OECD Model Convention: discussion on proposed changes to Commentary 3 September 2010 
During the 2010 IFA Congress in Rome a distinguished panel from OECD and practice discussed the pros and cons of maintaining or abolishing Article 17 of the OECD Model Convention. The OECD has published in April of this year proposed changes to the Commentary on Article 17 and has invited comments from...
Source: Report by Rijkele Betten
 The Netherlands: Buzz about FIFA tax exemptions for Netherlands - Belgium Bid for 2018 World Championship Football 2 August 2010 
Following the ambush marketing actions of Bavaria in South Africa during this year’s Football World Championship, and the threatening of detention for the personnel hired by Bavaria in South Africa, Netherlands journalists and politicians have taken interest in the conditions under which the Netherlands...
Source: Rijkele Betten
 UK: Reconsideration of taxation of foreign sportspersons? 18 July 2010 
Last July the Jamaican sprinter Usain Bolt announced that he will not compete in the United Kingdom because of its tax rules for foreign sportspersons. Foreign sportspersons (and artistes) who perform in the United Kingdom are subject to UK tax on tournament prize winnings, appearance fees, and other...
Source: Rijkele Betten
 Belgium: Court of Appeal of Antwerp decides: No obligation for organiser to check whether tax treaty threshold is passed by foreign artist 16 July 2010 
The Court of Appeal of Antwerp decided on 11 May 2010 that the organiser of a public event does not have the obligation to check whether the threshold of 3000 USD in Article 14(2) of the (no longer effective) 1970 tax treaty concluded by Belgium and the United States had been passed by an individual...
Source: Fiscoloog Internationaal 319, 30 June 2010 (in Dutch), report by Rijkele Betten
 PORTUGAL: New tax regime for non-habitual residents – second update 4 June 2010 
Following the previous two headlines on this subject [see archive], an administrative ruling was recently issued by the Portuguese Tax Authorities.
As previously mentioned, several relevant practical problems for the application of the new tax regime remained unsolved, with the Tax Authorities apparently...
Source: Ricardo da Palma Borges & Associados, Lisboa, Portugal
 OECD Published Discussion Draft on Application of Article 17 of OECD Model Convention 3 May 2010 
On 23 April 2010 the OECD published a discussion draft on the application of Article 17 of the OECD Model Convention. The discussion draft deals with the following issues:
- definition of sportsmen or entertainer
- treatment of race prizes
- personal activities of sportsmen or entertainer “as such”
- source...
Source: Rijkele Betten
 Forthcoming: Report on Seminar of 12 & 13 April 2010: Legal and tax treatment of sports image rights agreements 3 May 2010 
A conference report will follow shortly.

For those interested a limited number of valuable documentation sets of the seminars is available. Please contact NOLOT Seminars at erica@nolot.nl.

TWO-DAY PRACTICAL AND INTERACTIVE SEMINAR, 12 & 13 April 2010, London
Legal and tax treatment of sports image...
Source: NOLOT Seminars
 PORTUGAL:New tax regime for non-habitual residents – update 8 March 2010 
In September 2009 Portugal introduced a tax regime for non-habitual residents, providing for the exemption (with progression) of certain kinds of foreign-sourced income, on the one hand, and for a special 20% flat personal income tax rate on employment and independent personal services income from both...
Source: Ricardo da Palma Borges & Associados, Lisboa, Portugal
 THE NETHERLANDS: No Netherlands VAT on transfer fee charged by Netherlands based intermediary 5 March 2010 
A much debated issue has been whether VAT is due on the transfer fee received by Netherlands intermediary for the transfer of professional soccer players from the Netherlands to abroad (in the two cases at hand to Germany and the United Kingdom). The Netherlands Supreme Court had in its decision of 6...
Source: Decision of 16 February 2010 of the Court of First Instance of Haarlem, Nrs. AWB 09/314, 09/315, 09/316, 09/317 and 09/318. RB
 GERMANY: No domestic tax liability for fee paid for lending a professional soccer player from club abroad 2 February 2010 
In a recently published decision of 27 May 2009 the German Supreme Tax Court (Bundezfinanzhof) has decided on the taxation of fees paid by a German professional football club to a foreign football club (decision I R 86/07) for lending a professional football player between 1 July 1995 to 30 June 1996....
Source: BFH IR 86/07, Rijkele Betten
 THE NETHERLANDS: Netherlands tax authorities seize furniture and computers of poker player intending to emigrate from the Netherlands to Malta 1 February 2010 
It has been reported that the Netherlands tax authorities have recently seized properties of a Netherlands professional poker player. The poker player apparently initiated talks with the Netherlands tax authorities regarding their claim on his previous gains derived by playing poker in foreign tournaments...
Source: Netherlands press
 INDIA: Case law on foreign earnings of Indian entertainer 20 January 2010 
In international tax literature an interesting Indian tax case concerning the taxation of foreign earning by an Indian resident entertainer has been described recently. In the case at hand an Indian celebrity had earned income during the 1994 – 1995 assessment year by participating in an entertainment...
Source: D.P. Sengupta, Bollywood and the World of Tax Treaties, Intertax, Volume 38, Issue No. 1.
 THE NETHERLANDS: non-resident golf player is allowed to withdraw filed tax return during Court case 4 January 2010 
Netherlands: non-resident golf player is allowed to withdraw filed tax return during Court case

A UK resident professional golf player had – between 2002 and 2006 - won a price during the KLM Dutch Open. He received a gross amount of EUR 200.200, on which an amount of EUR 40.040 was withheld as wage...
Source: Court of First Instance of Breda, decision of 26 October 2009, Nr. AWB 08/2885
 Spain: Proposed cap to the elective regime applicable to incoming sportsmen 8 November 2009 
The parliamentary groups of the Spanish Socialist Party, the former Communist Party and the Galician Nationalist Party announced on the first week of November that they had reached an agreement to propose an amendment (the “proposal”) to the Annual Financial Law 2010 establishing a cap on the elective...
Source: Angel Juarez, Juarez Asociados Abogados, Barcelona (Spain)
 Belgium: limitation to application of special tax rates for athletes, trainers and referees 4 November 2009 
In 2006 Belgium adopted – under certain conditions - special tax rates for income earned by resident and non-resident athletes, trainers and referees. Basically, the applicable rate is 33%, and 16.5% for athletes under the age of 26. The special regime is only applicable if the taxpayer did have additional...
Source: Legislative Proposal of 22 October 2009, 2170/008
 Lithuania: Decrease of withholding tax on income paid for Lithuanian entertainment and sports activities 2 November 2009 



As of 1 January 2009 Lithuania had increased its withholding tax on income paid to non-resident companies for entertainment and sports activities performed in Lithuania from 15% to 20%. It has now been proposed by the Governement to the Parliament to reduce the withholding tax rate from 20% to...
Source: Legislative Proposals, International Press
 Australia: Tax Office Follow-up on Spriggs and Riddell Jurisprudence 18 October 2009 
As a follow up to the Spriggs and Riddell jurisprudence (reported on sportsandtaxation.com on 18 September 2009), the Australian Tax Office is now inviting comments on the Decision of the High Court. The Tax Office has summarised the High Court decision as holding that fees paid for the negotiations...
Source: Australian Tax Office, Decision Impact Statement Spriggs and Anor v Commissioner of Taxation
 The Netherlands: Poker and Lottery tax: announcement of test tax procedures by poker players 8 October 2009 
It has been reported that a group of more than 60 professional poker players residing in the Netherlands, are starting a test procedure against their upcoming Netherlands lottery tax assessments. Prices gained by poker players are subject to the 29% gaming tax on the amount of gains made (under the Netherlands...
Source: Press reports
 The Netherlands: Was Payment to UK football club for 2002 Friendly Match in the Netherlands subject to Netherlands wage tax? 7 October 2009 
In 2002 a Netherlands professional football club made a payment of EUR 133,000 to a UK football club for a friendly match in the Netherlands. Apparently it was specified that EUR 2,720 was meant to cover costs made and no withholding of wage tax took place. The UK football club paid its players their...
Source: Advice Advocate-General of 6 August 2009, No. 09/00296
 The Netherlands: Application of Netherlands tax treaties to transfer fees: Article 15 or Article 17? 1 October 2009 
Before the Netherlands Supreme Court a rather factual case is pending regarding the taxation of the part of the transfer fee that was derived by a professional football player, who played until the end of 2001 in Sweden and from 2002 onwards in the Netherlands.

It appears that the facts were as follows:...
Source: Advice Advocate-General of 30 July 2009, CPG 08/02054
 Portugal: Introduction of 20% income tax rate and new tax regime for non-habitual residents 28 September 2009 
Portugal has per Decree-Law Nr. 249 of 23 September 2009 introduced a new income tax regime for non-habitual resident individuals. The tax regime will be available to individuals who became resident of Portugal from 1 January 2009, without having been resident in Portugal during the 5 years before that...
Source: Ricardo da Palma Borges, Ricardo da Palma Borges & Associados, Lisboa, Portugal
 Australia: High Court allows Spriggs and Riddell management expense deduction for pro athletes 18 September 2009 
In an interesting decision the Australian High Court held that management expense deductions are deductible expenses for professional athletes. In the case at hand the taxpayers were a professional Australian Rules football player and an Australian professional rugby league player. Their management agreements...
Source: Spriggs v. Commissioner of Taxation; [2009] HCA 22, 18 June 2009
 United Kingdom: UK Footballers try to avoid high tax 16 September 2009 
It has been reported that football players playing in the United Kingdom are trying to anticipate on the forthcoming increase of the top UK income tax rate. As of April 2010 this rate will be increased from 40 to 50% (on earnings exceeding GBP 150,000 per year). One option is to move to another country,...
Source: Various international press
 United States: IRS addresses US Source Retainer Fees and Ranking and Placement Bonuses derived by Professional Golf and Tennis Players from On-court Endorsement Contracts 4 September 2009 
The Internal Revenue Service (IRS) has issued on 2 July 2009 a generic legal advice memorandum on whether retainer fees and ranking and placement bonuses should for the application of the Internal Revenue Code (IRC) be classified as income from personal services, royalties, or both and whether such income...
Source: IRS, AM 2009-005, report by Rijkele Betten
 Amended Netherlands legislation on sending commercial messages by mail 1 September 2009 
Dear reader,

For many years we have been sending our newsletters - with sometimes commercial messages - to you. We always offer the opportunity to let us know that you no longer want to receive the newsletter.

We would like to expressly point this out, if you do not want to receive the newsletter...
Source: sportsandtaxation.com
 Sweden: Proposed amendments to the taxation of non-resident artists and athletes 14 May 2009 
Following a formal request by the European Commission to end discrimination of non-resident artists and athletes (IP/07/1163 of 24 July 2007) the Swedish Government has now introduced a legislative proposal (Proposed Bill 2008/09:182) to parliament that would enable non-resident artists and athletes...
Source: Rijkele Betten
 Nolot organiseert haar 5e seminar over Sport, Recht en Belasting (message in Dutch) 16 April 2009 
Op 10 juni 2009 organiseert NOLOT, dit keer in samenwerking met NOC*NSF, voor de vijfde keer haar seminar over Sport, Recht en Belasting. Dit seminar vindt plaats in het congrescentrum van Papendal van 09.30-17.00 uur. De sprekers zijn allen vooraanstaande praktijk fiscalisten en advocaten, zoals Peter...
Source: info@nolot.nl
 India: Advance Ruling that Golf Tournament organizer has no permanent establishment in India 10 April 2009 
It has been reported that the Advance Ruling Authority of India has held in “Golf in Dubai LLC” that isolated temporary activities of a non-resident in India without any regularity of continuity do not constitute a permanent establishment in India. Hence the business profits from the activities in India...
Source: Tax Notes International, Golf Tournament Organizer has No PE in India, Advance Ruling Authority Says, by Shrikant S. Kamath
 Germany: From 2009 Germany applies new tax rules on foreign athletes and artists 1 April 2009 
As required by the case the law of the European Court of Justice (Gerritse, Scorpio), Germany has adapted per 1 January 2009 its tax rules for foreign athletes and artists adapted. The rules that were rejected by the European Court were for example the minimum rate of 25% for foreigners and the separate...
Source: Art. 50a of the Individual Income Tax Act (Sec. 50a. EstG)
 Netherlands asks Austria to replace exemption method by credit method to relief athletes and artists from international double taxation 30 March 2009 
The Netherlands Government has asked the Netherlands States General for tacit approval of the Protocol of 8 October, 2008 to the 1989 tax treaty that has been concluded between the Netherlands and Austria. As a result of the Protocol, the Convention will be amended concerning one issue: in Austria will...
 European Commission requests Finland to end discriminatory taxation of non-resident artists and sportsmen 29 March 2009 
European Commission requests Finland to end discriminatory taxation of non-resident artists and sportsmen

The European Commission has found that Finland subjects non-resident artistes and sportsmen to tax applying a different set of rules than apply to resident artists and sportsmen. This may in some...
Source: Case 2008/2115
 Portugal: Introduction of 20% income tax rate and new tax regime for non-habitual residents 28 September 2008 
Portugal has per Decree-Law Nr. 249 of 23 September 2009 introduced a new income tax regime for non-habitual resident individuals. The tax regime will be available to individuals who became resident of Portugal from 1 January 2009, without having been resident in Portugal during the 5 years before that...
Source: Ricardo da Palma Borges, Ricardo da Palma Borges & Associados, Lisboa, Portugal
 Netherlands: Sport clubs to be exempt from inheritance and gift tax 16 September 2008 
Part of the 2009 Tax Plan is an exemption for sportscubs from inheritance and gift taxes. From 2009 sports clubs will not have to pay inheritance tax on received gifts and inheritances. One time donations and gifts to sports clubs will however not become eligible for a deduction against taxable income....
Source: Source: 2009 Tax Plan
 Belgium: new copyright withholding tax rules 5 September 2008 
Belgium has amended its tax rules governing copy right income of artists and authors. The applicable rate has remained at 15%, but the lump sum deduction have been amended. For the first bracket of EUR 10,000 the lump sum deduction will be 50%, and for the next bracket of EUR 10,000 the deduction will...
Source: Belgium Introduces New Copyright Withholding Tax Rules, Brent Springael, Tax Notes International 21 August 2008
 Australia: Federal Court refuses deduction of expenses for negotiating employment contracts to professional athletes 2 September 2008 
In what turned out to be two test cases (see below) the Australian Commissioner refused the deductibility of payments to agents or management companies in relation to professional sportsmen. The cases concerned Mr. Sprigss, who was under contract in the Australian Football League and Mr. Riddell, who...
Source: Source: Commissioner of Taxation versus Spriggs [2008]FCAFC 150
 Germany: BFH decides on German source advertsing income derived by non-resident professional sportsmen 30 August 2008 
A German professional sportsmen moved in March 1993 from German to a low tax country. He was then during 10 years subject to the extended German income tax liability under the German Aussensteuergesetz. During 1994 and 1995 the taxpayer received income from advertsing activities in Germany. The Court...
Source: Rijkele Betten, BFH, 19 december 2007, I R 19/06
 United Kingdom: Court decides that acting services of UK based actress outside EU are not subject to UK VAT 3 May 2008 
UK Revenue & Customs had argued that the place of supply of acting services that were supplied in New Zealand by a UK based actress was at the address of the actress in the United Kingdom. This rule is included in Article 9(1) of the Sixth VAT Directive. According to the actress her services were covered...
Source: Saffron Burrows v. Revenue & Customs
 Netherlands: Artiste not entitled to compensation for (former) frontier workers under 2001 Netherlands – Belgian tax treaty 2 May 2008 
Per 1 January 2003 a new tax treaty became applicable between the Netherlands and Belgium [the treaty was concluded in 2001, and hereafter reference is made to the 2001 treaty]. The former treaty [which was concluded in 1970, hereafter referred to as the 1970 treaty] included in its Article 15(3) a frontier...
Source: Decision of Court of First Instance of Breda of 18 March 2008 AWB 07/2659
 SEMINAR 29 MAY 2008 ON SPORTS AND TAXATION (message in Dutch) 1 May 2008 
Het programma bevat o.a. de volgende onderdelen:
- Ervaringen met de nieuwe artiesten- en beroepssportersregeling, door dr Dick Molenaar;
- Vennootschapsbelastingplicht van sportstichtingen en verenigingen, door mr. Nathalie Idsinga en mr. Caroline de Hoop Scheffer;
- Loonbelasting, sociale verzekeringen...
Source: Marketing
 Korea: Introduction of withholding tax obligation for payments to artistes companies 26 April 2008 
It has been reported that the Republic of South Korea has introduced per 1 January 2008 the obligation for Korean resident payers to non-resident entertainment companies (“artiste companies”) without a permanent establishment in Korea. Any person who pays for entertainment services to such no-resident...
 German Federal Tax Court (Bundesfinanzhof) holds that German withholding tax on artists and athletes is compatible with EC law and acte clair 17 March 2008 
In a decision of 29 November 2007 the German Federal Tax Court (Bundesfinanzhof, hereinafter BFH) has decided that the German withholding tax on artists and athletes is compatible with EC law. In the case at hand a German company had organised an event in Germany in which UK resident artists featured....
Source: Source: Decision (Beschluss) of 29 November 2007, I B 181/07, Rijkele Betten
 Belgium: new tax regime for sportsmen and –women active in Belgium 11 March 2008 
Until 2008 Belgium applied its beneficial tax system for sportsmen (and women) only to incoming foreign sportsmen: their income was taxed at a special rate of 18%. This special rate could not be enjoyed by Belgian resident sportsmen, and led to a certain preference to contract foreign sportsmen.

A...
Source: Act of 4 May 2007, Official Gazette of 15 May 2007, Rijkele Betten
 Spain – the Netherlands: Spanish case law on classification of payments for image rights 9 March 2008 
It has been reported that the Spanish National Court (Audiencia Nacional) has decided that income from licensing image rights paid to Netherlands resident companies cannot be classified as royalty income under the tax treaty concluded between the Netherlands and Spain. The payments took place in 1999,...
Source: National Court (Audiencia Nacional), Decision of 18 July 2007, 249/2005
 Russia: Olympic Law provides for exemption of income for Olympic Games 2014 18 February 2008 
It has been reported that Russia has already enact its Olympic Law, which stipulates that certain income from the organization of the 2014 Olympic Games is exempt from income taxation in Russia. The exemption applies to corporate income tax for the organizers, withholding tax on payments, VAT on disposal...
 AUSTRALIA: Ending of withholding on payments to foreign entertainment support staff 11 September 2007 
From 1 July 2004 Australia has introduced a withholding tax regime for payments made to foreign residents engaged in entertainment and sports activities, including their support staff. Apparently, the entertainment industry (in particular reference has been made to the film industry) has objected against...
Source: Source: OPS 2007/7, 5 September 2007
 Germany: BFH decides that foreign models were not subject to German wage tax 4 September 2007 
The taxpayer produced commercials. They regularly hired non-German resident models who stayed for a short period – one to three days - in Germany for the production of the commercial. Often the models would only once be active for the taxpayer. The taxpayer did not withhold wage tax on the payments to...
Source: Decision of 14 June 2007, VI R 5/06
 Italy: Motorcycle champion Rossi accused of tax fraud 9 August 2007 
It has been reported that motorcycle champion Valentino Rossi is under investigation of the Italian state tax agency. It appears that Rossi had already in 2000 taken up residence in the United Kingdom and was subject to UK tax as a resident non-domiciled taxpayer. Effectively this meant that e.g. income...
Source: Several international press reports
 IGTSS: Supplement 7 released 6 August 2007 
...
Source: SPORTSANDTAXATION
 Australia: Ruling on Income From Freelance Journalism for Italian Radio Station 1 August 2007 
The issue of a recent ATO ruling (ATO Interpretative Decision) was whether income derived by an Australian resident from performing freelance journalism in Australia for an Italian radio station is assessable with Australian income tax.

The ATO decided that the provision of freelance journalism is...
Source: ATO ID 2007/104 of 18 May 2007
 The Netherlands: Administrative Decree on artists and VAT 29 June 2007 
On 13 June 2007 the Netherlands tax authorities issued an updated Decree on artists and their VAT position. According to the Decree artists that operate independently (“zelfstandig”) are for VAT purposes to be considered as entrepreneur. In certain cases wage tax will be withheld on payments to independent...
Source: Source: Administrative Decree of 13 June 2007, Nr. CPP07-117.
 Belgium: Beneficial tax regime for professional sportsmen 29 June 2007 
It has been reported that the Belgian Parliament has adopted a legislative proposal which will improve the tax regime for professional sportsmen as per 1 January 2008. The amendment will contain the following elements:
- currently only the wage of foreign players are eligible to the application of a...
Source: New Article 275/6 of the Belgian Income Tax Code (WIB 1992)
 ARGENTINA: Argentinean Tax Authorities require National Football Association of Argentina to provide information regarding professional players 2 June 2007 
It has been reported that the Argentinean Federal Tax Bureau has required the National Football Association of Argentina to provide the following information regarding professional football players in the Primera A and the Nacional B divisions:
- identity of participants in the economic rights of the...
Source: General Resolution 2182/06
 THE NETHERLANDS: Legislative proposal to make hobby horses subject to the 19% VAT rate 3 January 2007 
Under the EC Sixth VAT Directive the delivery of living animals may be subject to the lower VAT rate (in the case of the Netherlands 6%) under the condition that the animals are meant for the production of food or are destined for agricultural use.

Under the Netherlands VAT legislation a lower VAT...
Source: Rijkele Betten
 ITALY: Ruling on tax treatment of payments from Italy to German resident profssional sportsmen 2 January 2007 
An Italian professional cycling club had concluded contracts with several German resident professional cyclists. Under the contracts (“contratti di collaborazione coordinate e continuative)” the cyclists were treated as self-employed workers. The Italian legislation contains a rule that payments by Italian...
Source: Rijkele Betten, Ruling 79/E of 16 June 2006
 Report Seminar Sport and taxes of 13 December 2006 27 December 2006 
Nolot organised on 13 December 2006 its Fourth Seminar on Sports and Taxes (this time in Dutch). The seminar was chaired by Mr, Paul Foortse of Limperg Sports Management in Bussum. The focus was mainly on international tax developments from a Netherlands perspective for professional soccer players. Also...
Source: Rijkele Betten
 SRI LANKA: Relief for levy on foreign films, television dramas and commercials 20 December 2006 
In the beginning of July 2006 the government of Sri Lanka had introduced a levy on foreign films, televisions and commercials. The levy was meant to protect the domestic film industry and to restrict the influx of foreign material. The levy was not due on educational and cultural programmes.

From...
 THE NETHERLANDS: Tax authorities audit accounts of top amateur soccer clubs 19 December 2006 
The Netherlands tax authorities have reported that they have conducted audits of the accounts of 18 amateur soccer clubs that play in the highest Netherlands amateur competitions. The main taxes that were investigated are the Value Added Tax and the wage tax. The average correction for VAT amounted to...
Source: Ministry of Finance, Press Release 18 December 2006
 THE NETHERLANDS: Seminar 13 december 2006 over sport en belasting (message in Dutch) 30 October 2006 
Hoe vaak gebeurt het dat een belasting wordt afgeschaft? Zelden. Maak het mee. Op 13 december 2006 organiseert Nolot BV in Sint Michielsgestel haar jaarlijkse seminar over sport en belasting. Dr. Dick Molenaar,die aan de wieg heeft gestaan van deze aanstaande afschaffing, licht toe hoe de afschaffing...
Source: info@sportsandtaxation.com
 THE NETHERLANDS: EXEMPTION OF NETHERLANDS WITHHOLDING TAX FOR TAX TREATY RESIDENT SPORTSPERSONS AND ENTERTAINERS 10 October 2006 
THE NETHERLANDS: EXEMPTION OF NETHERLANDS WITHHOLDING TAX FOR TAX TREATY RESIDENT SPORTSPERSONS AND ENTERTAINERS

In an unprecedented move the Netherlands tax authorities have decided to allow an exemption from the withholding on payments in relation to sports- and entertainment performances in the...
Source: 2007 Tax Bill (Belastingplan 2007), Parliamentary Documents II 2006/07, 30 804, No.2
 SOUTH AFRICA: Withholding tax on entertainers and sportspersons in effect 30 September 2006 
The previously announced 15% withholding tax on the income of non-resident entertainers and sportspersons which was announced in the 2005 Budget and included in Revenue Act No.31 of 2005 took effect in 1 August 2006.

Event organizers, producers and others who make payments to foreign entertainers...
Source: Press Statement of the SARS, see www.sars.gov.za
 IRELAND / THE NETHERLANDS: Rolling Stones set the example for U2 in obtaining tax savings through the Netherlands 28 September 2006 
During the Summer of 2006 it has been reported that the Rolling Stones have over the years achieved considerable tax savings by receiving their royalties through Netherlands companies. These Dutch companies are apparently paying a rather low effective tax rate on the royalty receipts. One of the attractiveness...
 Australia: Statement of practice on variation to foreign resident withholding regime 25 September 2006 
The Australian Tax Office (hereinafter ATO) has issued Practice Statement PS LA 2006/10 on the administration of the foreign resident withholding regime. The Statement allows the ATO discretion in setting the withholding amounts.

The Australian withholding tax is not the final tax due, non-resident...
Source: http//law.ato.gov.au/atolaw
 SEMINAR 11 & 12 May 2006 GENEVA: REPORT 29 May 2006 
During our seminar on 11 and 12 May 2006 in Geneva some very interesting presentation were delivered.

Prof. Xavier Oberson informed the audience about the Swiss practice of the taxation of sportsmen and artists, which is surrounded by a lot of uncertainties that mostly can be resolved in consultation...
Source: info@sportsandtaxation.com
 UNITED KINGDOM: House of Lords decides that AGASSI must pay UK tax on his sponsorship revenue 24 May 2006 
The Highest Court in the United Kingdom has taken the final decision in the AGASSI case (Agassi (Respondent) v. Robinson (Her Majesty's Inspector of Taxes) (Appellant), Session 2005-06 [2006]UKHL 23).
At first instance the Inland Revenue had won its case, in first appeal Agassi succeeded but now the...
Source: Dr. Rijkele Betten
 THE NETHERLANDS: UEFA Football Final: Special amendment of professional sportsmen tax regime 17 May 2006 
On 10 May 2006 the UEFA Football Final took place in the stadium of PSV Eindhoven. Under the Netherlands artistes and professional sportsmen tax regime Netherlands withholding tax would have been due on the payments to the players during this Final. On 8 May 2006 the Under Minister of Finance sent a...
Source: Dr Rijkele Betten
 BELGIUM: No professional withholding tax is due on payments made to a German rent-a-star-company 15 May 2006 
The Ghent Court of Appeal has held that no professional withholding tax was due on payments made to a German company for its performance in Belgium (decision of 21 March 2006, not yet published).
The facts were as follows:
- In 1993 a Belgian company hired German artists, through an artiste company,...
Source: Mr. Ken Roelands, Tiberghien Advocaten - Avocats - Lawyers
 SEMINAR: Last chance to register for Seminar Sports and Taxation 11& 12 May 2006 Geneva 24 April 2006 
Registration for our 11 & 12 May 2006 Seminar closes on 1 May 2006. Join us for expanding your knowledge of current SPORTS legal and tax law issues, benefit e.g. from first hand information on the taxation of income related to the forthcoming 2006 WORLD FOOTBALL TOURNAMENT and last but not least expand...
Source: info@sportsandtaxation.com
 FRANCE: Remuneration paid by a club to a professional sportsmen for the collective commercialisation of the collective image of the team to be taxed as non-trading profits 21 April 2006 
Regarding professional sportsmen certain remunerations paid by their sports club for the exploitation of the collective image rights of the sports team are taxed in a more advantageous way than salaries. The main benefit is that these remunerations are not subject to the social taxes (CSG, CRDS and the...
Source: Guideline 5F-12-06, Nr. 59 of 31 March 2006
 AUSTRALIA: Payments to non-residents authors are subject to royalty withholding tax 17 April 2006 
The Australian Taxation Office (hereafter ATO) has recently published its Taxation Determination TD 2006/10 on the treatment of payments to non-resident authors. According to this public ruling a payment to a non-resident author for the use of, or the right to use, the author’s copyright is a royalty...
Source: ATO Taxation Determination 2006/10
 NETHERLANDS: Corporate income tax liability of Foundation which organizes the Tour of Holland (“Ronde van Nederland”) 14 April 2006 
A Netherlands Foundation organized for many years the cycle race Tour of Holland. Although the Tour is no longer organized in this form, the corporate income tax liability of the organizing Foundation is before the Courts. The goal of the Foundation was the organisation of the year Tour of Holland (“Ronde...
Source: Rijkele Betten
 THE NETHERLANDS: Professional soccer clubs may not include marketing intangibles as assets on their opening balance sheet for corporate tax purposes 6 April 2006 
Following an explicit change in policy of the Netherlands tax authorities, the Netherlands professional soccer clubs have since 1994 been subject to corporate income tax. A dozen years later, Netherlands case law is still pending on the issue of whether the clubs may include a value on their opening...
Source: Conclusion of A-G Overgaauw in case Nr. 41985, 24 February 2006
 SEMINAR: Seminar Sports and Taxation 11 & 12 May 2006 Geneva 6 April 2006 
Registrations for our seminar on Sports and Taxation are well underway. We have currently delegates from e.g. Austria, France, Italy, the Netherlands, Luxembourg, Spain, Sweden, United Kingdom. Delegates are tax advisors, sports lawyers, representatives of international sports bodies and financial institutions....
Source: MARKETING
 THE NETHERLANDS: Court holds that non-resident Dutch football player is discriminated against for income received during the 2000 European Championship 30 March 2006 
In 2000 Belgium and the Netherlands co-organised the European Football Championship. The two countries agreed with the Union of European Football Associations to tax non-resident players by the levying of an 18% withholding tax. The Netherlands and Belgium retained the right to levy any additional income...
Source: Rijkele Betten
 THE NETHERLANDS: TV GAME SHOW HOSTESS IS ARTISTE FOR APPLICATION OF ARTICLE 17 OECD MODEL 28 February 2006 
A Netherlands television production company had concluded a contract with the personal company of a TV game show hostess. The contract was concluded in 1997, and had an effective period from 1 September 1997 until 31 August 2000. The remuneration amounted to NLG 500,000 (EUR 226,890) per year, and the...
Source: Rijkele Betten
 THE NETHERLANDS: Internationally active professional musician for foreign income not subject to Netherlands social security levies 16 February 2006 
The Court of Appeal of ‘s-Hertogenbosch recently decided that a Netherlands resident professional musician, who worked during 1999 for 6 months in Germany, was for the income earned during that period not subject to the Netherlands social security levies (case Court of Appeal of ‘s-Hertogenbosch, 8 November...
Source: Rijkele Betten
 AUSTRIA: Decision of ECJ on deduction of input VAT by sports club 6 February 2006 
A sports club, that was Austrian tax purposes classified as a non-profit-making association, undertook in 1997 the construction of an annexe to its clubhouse. Part of the annexe was intended to be used for sports activities, whilst the other part was to be used as a refreshment bar and leased to a lessee....
Source: ECJ: Turn- und Sportunion Waldburg v. Finanzlandesdirektion für Oberösterreich (C-246/04)
 UNITED KINGDOM: Action against perceived abuse of film tax relief 30 January 2006 
The UK Revenue and Customs announced on 20 December 2005 a plan to introduce legislation to deny film tax relief to investment partnerships by limiting the relief to film production companies. The British film industry had received a boost worth up to £200m over 3 years - as the Chancellor announced...
Source: www.hm-treasury.gov.uk
 THE NETHERLANDS: Tax authorities will scrutinize 2005 tax returns for income derived by artists and professional sportsmen 10 January 2006 
Since some years, the Netherlands tax authorities apply the policy of making public which items will be specifically scrutinized when dealing with the individual income tax returns of a particular year. For the tax year 2005 special attention will be given to income derived as free lancer, household...
Source: Netherlands Ministry of Finance, No. WT2006-01-04
 IGTSS: Supplement No. 5 published 1 December 2005 
...
Source: info@sportsandtaxation.com
 The Netherlands: Court case on professional musician who received simultaneously German-source and Netherlands source income 28 November 2005 
The Court of Appeal of ’s-Hertogenbosch recently had to deal with a Netherlands resident professional musician. During 1999 the musician worked part of the year in Germany for a Germany employer, and was also during these periods active in the evening hours for some Netherlands chores. The German source...
Source: Rijkele Betten
 The Netherlands: Conclusion A-G on application of Article 17 of the OECD Model Convention to the basis salary 14 November 2005 
Following a number of Court of Appeal cases the Advocate General to the Netherlands Supreme Court had the opportunity to give his opinion on the application of provisions such as Article 17 of the OECD Model Convention to the basic salary which a professional sportsmen receives from his employer. The...
Source: Rijkele Betten
 THE NETHERLANDS: Cruijff achieves abolishment of gift tax 18 October 2005 
In an unprecedented manner, Johan Cruijff has been able to abolish the Netherlands gift tax levied gifts for public benefits. Recently the 11% tax rate had already been reduced to 8%, but Cruijff's comments on the levy of gift tax on the soccer fields donated by the Cruyff Foundation (see our previous...
Source: Rijkele Betten
 NETHERLANDS: Gift tax due on Cruyff Soccer Fields 7 October 2005 
The Netherlands tax authorities have apparently recently decided to request from the Cruyff Foundation payment of gift taxes (at the rate of 8%) on the donations received from the KNVB and the team players of the National Soccer Team. The Cruyff Foudnation has used these funds to offer soccer fields...
Source: Rijkele Betten
 THE NETHERLANDS: The Netherlands tax authorities publish new Decree on 30% tax regime for extraterritorial employees 24 August 2005 
The Netherlands tax authorities have published the Decree of 24 August 2005 (Nr. CPP2005/464M) on the application of the 30% income tax regime for extra territorial employees. The Decree is composed of a compilation of several previous decrees, and several Question and Answer decrees. There are not...
Source: Rijkele Betten
 Supplement 6, special offer for new subscribers 22 August 2005 
Supplement 6 of our loose-leaf publication The International Guide to the Taxation of Sportsmen and Sportswomen, which will inter alia include a new chapter on France, is about to be released.

New subscribers that react before 31 October 2005 will receive the basic work, the 2005 supplement and the...
 TAIWAN: Taxation of foreign film providers 18 August 2005 
Before 1 August 2005 payments to foreign film providers have been exempt from tax in Taiwan, if the films were provided for a certain time period without the permission to reproduce the films (on the basis of a 1979 ruling).

The Taiwanese Ministry of Finance has abolished the 1979 ruling, and now...
 GERMANY: Case law on technical and organisation services in connection with artistic performances in Germany 5 August 2005 
The German Bundesfinanzhof decided in 17 November 2004 (decision nr. I R 20/04) that income from the provision of technical services in connection with artistic performances in Germany is only in exceptional circumstances subject to withholding tax in Germany.

In an article in Tax Notes International...
Source: Tax Notes International, 13 July 2005, Hans-Georg Berg and Marcus Schanne, German Taxation of Artists and Foreign Production Companies
 SPAIN: Favourable tax regime for inbound managers and professionals finally implemented 29 July 2005 
The Spanish Government has approved on 11 June 2005 the Royal Decree 687/2005, which implements the procedure necessary to apply for the Spanish 25% income tax regime for inbound managers and professionals.

Under the tax regime the salary of immigrating managers (and inter alia professional football...
Source: Royal Decree 687/2005
 SOUTH AFRICA: In 2005 Budget proposal to introduce withholding tax on visting entertainers and sportsmen 16 July 2005 
...
Source: Rijkele Betten
 THE NETHERLANDS: Report of seminar on 1 July 2005 (message in Dutch) 15 July 2005 
Op 1 juli 2005 werd door Nolot BV een seminar over sport en belasting georganiseerd in Congrescentrum De Ruwenberg in Sint-Michielsgestel. Een 7 tal sprekers bespraken de lopende ontwikkelingen ten aanzien van sport en BTW, loonbelasting, het organiseren van een (internationaal) sportevenement in Nederland...
Source: Nolot BV
 THE NETHERLANDS: In appeal: Conclusion of A-G is that professional soccer club is not an institution for the public benefit 6 July 2005 
A Netherlands Court of Appeal had decided on 13 November 2003 that the professional football club NAC (based in Breda) should for the purpose of the Netherlands inheritance tax be considered as an institution for the public benefit. Therefore the receipt of an inheritance by the club NAC was subject...
Source: Rijkele Betten
 NETHERLANDS: Fishing expedition Netherlands tax authorities employer reimbursements of golf club contribution 17 June 2005 
It has been reported in the Netherlands press that a regional Netherlands tax office might be undertaking a fishing expedition to find out whether employers are tax-free reimbursing their employees for contributions or membership fees they pay to their golf club. This action follows case law (of a Court...
Source: Rijkele Betten
 SOUTH AFRICA: Appearance fee paid to non-resident professional golfer held to be taxable 31 May 2005 
In 1999 a UK resident golf professional participated in the Nedbank Million Dollar Golf Challenge that was held in Sun City in South Africa. The golfer granted to the organiser of the tournament the right to “exploit the golfer’s intellectual; property in order to enable [the organiser] to promote the...
Source: Rijkele Betten
 FINLAND: Advance Ruling on taxation of best performance reward 29 May 2005 
The Finnish Supreme Administrative Court ruled on 1 June 2005 on the taxation of the best performance reward, which a non-resident athlete may earn through the participation in the 2005 Athletics World Championships that are held in August 2005 in Helsinki. The rewards (totalling an amount of USD 7 million)...
Source: Tax News Service (IBFD), Mr. Risto Rytöhnka
 INDIA: India has at last decided to grant tax exemption for 2006 Champions Trophy 28 May 2005 
It has been reported that the Government of India has decided to amend the Income Tax Act in order to exempt from tax both residents and non-residents regarding receipts from international sporting events held in India. The International Cricket Council had for a longer period been threatening to move...
 Seminar Sport en Belasting 1 juli 2005 (Message in Dutch) 27 May 2005 
LAATSTE GELEGENHEID VOOR INSCHRIJVING

Onderwerpen die aan de orde komen zijn diverse belangwekkende ontwikkelingen, zoals recente Nederlandse jurisprudentie betreffende professionele sportactiviteiten op het gebied van BTW, vennootschapsbelasting, inkomstenbelasting en de toepassing van belastingverdragen.

Inschrijvingen...
Source:
 NETHERLANDS: Netherlands tax authorities announce general audit of top level amateur soccer teams 22 May 2005 
The Netherlands tax authorities have announced that they will shortly audit all 84 amateur soccer clubs that participate in the highest amateur level (Hoofdklasse). The subject of the audit will be the wage and VAT returns filed and paid during the last 5 years. The authorities have indicated that there...
 BELGIUM: Application of Belgian withholding taxes on payments to foreign companies not allowed under series of Belgian tax treaties 10 May 2005 
On 23 June 2004 the Belgian Lower Court of Brussels dealt with a case were a Belgian organiser of performances during 1992 to 1996 in Belgium had contracted foreign production companies (published in F.J.F. No. 2005/33). These foreign production companies were resident in France, Germany, Ireland, the...
Source: Rijkele Betten
 Australia: High Court rules that also grants and price money of professional athlete are subject to income tax 30 April 2005 
In 2003 the Australian Federal Court held that an Australian javelin thrower was not carrying on a business (next to her employment with the Queensland Police Force), and that hence price money and grants were not subject to income tax. In Stone v FCT ([2003] FCAFC 145) the Federal Court did decide that...
Source: Rijkele Betten
 THE NETHERLANDS:Court case regarding depreciation on intellectual property rights of a professional soccer organisation 20 April 2005 
From the season 1994/1995 all 36 Netherlands professional soccer organisation (in Dutch Betaal Voetbal Organisatie, hereinafter BVO) became subject to corporate income tax. Consequently BVOs had to prepare an opening balance sheet. The taxpayer in the case at hand took the position that inter alia its...
Source: Court of Appeal Arnhem, 16 March 2005, Nr. 02/02510
 NETHERLANDS: VAT Treatment of the training of sporthorses 28 March 2005 
Judgement of the Court of Justice of the European Communities of 1 April 2004, Case C-320/02, Förvaltnings AB Stenholmen v Riksskatteverket (Sweden).
Gerechtshof ’s-Hertogenbosch (Netherlands), 16 February 2005, nr. 00/02881.

In the Stenholmen-case the Court of Justice has made clear that if an untrained...
Source: mr. drs. A.E.T.M. (Ton) van de Camp
 KOREA (REP. OF): Korea considers tax relief for entertainment industry 23 March 2005 
It has been reported that the Korean Finance Ministry has announced that entertainment companies may soon be allowed to reserve 30% of their taxable income as a reserve fund for three years. The measure is meant to support the entertainment industry, which apparently suffers from fluctuating income....
 NETHERLANDS: VAT Decree on the giving of the opportunity to sport 21 March 2005 
By Decree of 15 February 2005 (CPP2004/2318) the Netherlands tax authorities have explained the application of the special VAT regime for the giving of the opportunity to sport. Under this regime such services are subject to the reduced VAT rate of 6% (by their inclusion in various posts of Tabel I to...
Source: Source: Decree of 15 February 2005 (CPP2004/2318)
 INDIA: ICC tries to ensure India does not impose tax on the income from Champions Trophy 10 March 2005 
It has been reported that the International Credit Council (hereinafter ICC) has asked India to immediately settle the tax exemption issue for the 2006 Champions Trophy. According to the ICC chairman ICC cannot afford to shell out 40 to 50 percent tax for major tax tournaments. If the issue is not settled...
Source: Rijkele Betten
 NETHERLANDS: Conflicting court cases on application of Article 17 to basic salary 22 February 2005 
Netherlands Court of Appeals have decided in three cases on the application of tax treaty provisions such as Article 17 of the OECD Model Convention on the basic salaries of professional sportsmen. The first two decision were taken by the Court of Appeal of ‘s-Hertogenbosch, and concerned a professional...
Source: Rijkele Betten
 UNITED STATES: Americans Job Creation Act of 2004 provides for new incentives to produce films in the United States 18 February 2005 
Several countries provide tax and other incentives for film productions. These countries include the Unite Kingdom, Canada and Germany. Before the Jobs Creation Act the costs of film and television productions were not deductible in the applicable year for U.S. federal income tax purposes. A growing...
Source: Jobs Act Holds Incentives for Producing Films in the U.S., Harold L. Adrion, Peter A. Glicklich, Michele J. Alexander, Scott L. Semer, and Saverio (Sam) Coppola, Tax Notes International, 14 February 2005, at 605 et seq.
 NETHERLANDS: VAT is immediately due by Netherlands BV on 10-years finders fee regarding image rights of professional football player 10 February 2005 
The Court of Appeal of Amsterdam decided that regarding a finder’s fee relating to the image rights of a professional football player the VAT on the entire compensation was immediately due (decision of 20 December 2004, No. 03/03657).

The facts were as follows: the taxpayer BV X was established in...
Source: Court of Appeal of Amsterdam, decision of 20 December 2004, No. 03/03657
 The Netherlands: Court decision: employer’s reimbursements relating to the exercise of golf sport by employees included in taxable wages 4 February 2005 
The Court of Amsterdam decided on 29 April 2004 in several more or less similar cases concerning an employer’s reimbursements of costs of his employees regarding the membership and participation in golf activities. In one of the cases the employer held it commercially desirable that its employees participated...
Source: Rijkele Betten
 Spain: Former FC Barcelona player Luis Enrique to face criminal penalties on tax fraud allegations 1 February 2005 
Prosecutors in the proceedings initiated against former Real Madrid and FC Barcelona player Luis Enrique Martínez have claimed that the player shall receive a three-month prison sentence, to be substituted by a €68,000.00 fine due to the fact that this is the player's first criminal infringement and...
Source: Angel Juarez, Juarez & Associados, Barcelona
 IGTSS Supplement 5 released and Spring 2005 Offer 31 January 2005 
Supplement 5 of The International Guide To the Taxation of Sportsmen and Sportswomen has recently been released. The Supplement contains a new chapter on The United States, and updates of the chapters on Belgium, Canada and the Netherlands.

The website www.sportsandtaxation.com has been modified to...
Source: Nolot BV
 United Kingdom: Appeals Court holds in favour of Agassi 14 January 2005 
A while ago the High Court ruled in André Agassi v. S. Robinson (HM Inspector of Taxes) that payments which the US resident company of Agassi received from a contract for Agassi’s endorsement of sportswear (relating to Nike Inc. and HEAD Sports AG) were subject to UK tax in as far as they related to...
Source: Rijkele Betten
 EC: Three new tax cases before the ECJ 12 January 2005 
Three new tax cases are pending before the European Court of Justice (ECJ) regarding the German taxation of sportsmen and artists: FKP Scorpio Konzertproduktion (C-290/04), Centro Equestro de Leziria Grande Lda. (C-345/04) and Centro di Musicologia Walter Stauffer (C-386/04). In all three cases, the...
Source: Dick Molenaar, All Arts Tax Advisers, Rotterdam, the Netherlands
 The Netherlands: Court decision: employer’s reimbursements relating to the exercise of golf sport by employees included in taxable wages 5 January 2005 
The Court of Amsterdam decided on 29 April 2004 in several more or less similar cases concerning an employer’s reimbursements of costs of his employees regarding the membership and participation in golf activities.

In one of the cases the employer deemed it commercially desirable that its employees...
Source: Rijkele Betten
 Taiwan: Tax authorities want to improve compliance by foreign and domestic entertainers 27 December 2004 
It has been reported in international press that the Taiwanese tax authorities will take steps to enforce the collection of withholding tax due by foreign entertainers. Apparently an increasing number of foreign artists are performing in Taiwan, following successful measures of the Taiwanese government...
 THE NETHERLANDS: Payments for image rights to football player to be taxed as salary 29 October 2004 
The Court of Appeal of Arnhem recently dealt with a case in which a Belgian professional football player received from the Netherlands club for which he played not only a regular salary, but also regular payments for the image rights of the football player.

The facts of the case appear to have been...
Source: Court of Appeal of Arnhem, decision of 31 August 2004, Nr. 01/02687
 REPORT on Seminar of 21 & 22 October 2004 28 October 2004 
During this first seminar organized by NOLOT BV around fifty tax, law and financial professionals from the sports sector gathered in Amsterdam. The presentations of the 10 speakers (from 8 countries) were highly rated by the delegates, as were the possibilities for networking during a boat trip during...
Source: Nolot BV
 BELGIUM:Scope of Belgian ruling system for certain foreign athletes expanded. 27 October 2004 
Since 2002, Belgian football and basketball teams (playing in the first and second division and being subject to certain criteria -licence system-) have the possibility to apply (through the intervention of their respective federations) for a ruling based on which certain foreign players that these teams...
Source: Hugo Verbist, PricewaterhouseCoopers Tax Consultants, hugo.verbist@pwc.be
 THE NETHERLANDS: Foreign activities of jazz player not taken into account for determining number of hours worked 21 October 2004 
Taxpayer X was born in 1950 and lived in the Netherlands. He was a jazz piano player and leader of a band. The enterprise of X is situated in the Netherlands. The band performs in the Netherlands and various other European countries. In the year at issue X realized 78,76% of his turnover outside the...
Source: Court of Appeal of Arnhem, decision of 8 September 2004, Nr. 00/01830
 SWITZERLAND: Canton of Ticino seeks back taxes from foreign football players of FC Lugano 20 October 2004 
It has been reported that the Swiss authorities are trying to recover non-paid taxes on income earned by professional football players of FC Lugano. Apparently, the club used to pay part of the salaries in cash in order to avoid paying tax on the entire salaries. The canton of Ticino is stated to have...
 THE NETHERLANDS:Reduced VAT rate of 6% applicable to BV which exploits hotel facilities for athletes 10 October 2004 
A Netherlands resident BV conducts the following activities:

- providing lodging and other services to athletes (against payments);
- advising organizers of important international athletic events;
- promotional activities for a certain individual.

From the beginning of 2000 the BV has in a new...
Source: Court of Appeal of Arnhem, decision of 16 September 2004, Nr. 03/01457
 BELGIUM: Case law regarding foreign artist companies 30 September 2004 
The Lower Court of Hasselt (Belgium) reportedly decided on 11 February 2004 a case regarding the taxation of foreign artist companies. In the case at hand a Cultural Centre in Belgium, had during a period of 6 years concluded contracts with various foreign artist companies regarding performances in Belgium....
Source: Rijkele Betten
 Seminar on International Sport Law and taxation Issues - 21 & 22 October, Amsterdam - Registration closes 8 October 2004 29 September 2004 
The possibility to register for our seminar closes on 8 October 2004.

Registrations have come in from The Netherlands, Belgium, Germany, Italy, Portugal, Spain, Switzerland, and the United Kingdom. Delegates are Sports Law Lawyers, Tax Lawyers, representatives of banks, Multinational Companies...
Source: Nolot
 United States: Proposed legislation to enhance deductibility of sports franchises 10 September 2004 
It has been reported that pending legislation in the US Congress, H.R. 4520, the "American Jobs Creation Act of 2004," would enhance deductibility of sports franchises. Sec. 685 of the proposed H.R. 4520 would let owners depreciate the entire value of sports franchises from their income taxes over a...
Source: http://waysandmeans.house.gov
 The Netherlands: Wage tax rules for classification of “professional athletes” 10 September 2004 
The Netherlands Wage Tax Act contains a special regime for professional athletes. For the purpose of the application of the Act, the Act contains a definition of a professional athlete. It is a person who on the basis of an agreement of a short duration (less than three months) or for a short period...
Source: Decree of 29 July 2004, Nr. CPP2004/752M
 The Netherlands: Certain costs of players’ agents may be tax-free reimbursed by the employer to e.g. a professional sportsmen 27 August 2004 
The Netherlands tax authorities have recently published their reply to the following question (unauthorised English translation): “When negotiating a new employment agreement for example professional football players often make use of the services of specified agents. May the employer tax-free reimburse...
Source: Decree of the Netherlands Under-Minister of Finance of 3 August 2004, No. CPP2004/566M; Rijkele Betten
 The Netherlands: Deductible costs of a foreign artist making a performance in the Netherlands 5 August 2004 
The Court of Appeal of ‘s-Hertogenbosch on 23 June 2004 dealt with a case involving the deductibility of travelling by private air plane and of tax consultancy advice. The facts of the case were as follows: an international renowned artist made a European tour from 27 April 2002 until 6 June 2002. On...
Source: Court of Appeal of ‘s-Hertogenbosch, No. 02/04826, Rijkele Betten
 ITALY: European Commission asks Italy to modify the accounting rules provided for by the 2 August 2004 
On July 7, 2004 the European Commission has formally asked Italy to modify Law no. 27 of February 2003 (so-called "Football Saviour Decree") that
allows sport clubs to write down the value of sportsmen's contracts over a
longer period of time than their useful economic life. The European
Commission...
Source: Marco Lombardi, Jones Day, Milano
 INDIA: Tax issue may be hurdle for India hosting the 2006 Champions Trophee 20 July 2004 
It has been reported that the World Cricket Organisation ICC is considering the Indian taxation of international events organised in India to be unacceptable. The ICC is looking for an exception, as is apparently allowed for in many countries. Also in other sports (e.g. regarding the 2004 European Football...
Source: Rijkele Betten
 SPAIN: Special Tax Regime for the 2007 America's Cup 18 July 2004 
Valencia (Spain) has been appointed as the organizing venue for the XXXII America's Cup in 2007.

The Spanish parliament has adopted special tax measures for the event. The main rules of the special regime concern:
- direct tax issues: various investment relie1ves, an exemption from corporate income...
Source: Mr. Angel J. Juárez, Juárez Asociades Abogados, Barcelona
 THE NETHERLANDS: Stipendium system for top athletes continued in 2005 9 July 2004 
Ms. Ross, the Netherlands Under-Minister for Sports, has decided to make means available for continuation in 2005 of the Netherlands so-called stipendium system for top athletes. Under this system athletes who belong to the world 8 best athletes in their discipline receive a basic income so that they...
Source: Rijkele Betten
 AUSTRALIA: Extension of withholding tax on payments to foreign resident performing artists or athletes 28 June 2004 
In order to improve the compliance of foreign residents with their Australian income tax obligations the Statutory Rules regulations have extended the obligation to withhold withholding tax on payments to foreign performing artists or athletes.
Regarding artists and athletes the relevant payments ...
Source: TA Amendment Regulations 2004 (No. 1)
 First 2004 supplement of IGTSS released 23 June 2004 
The forthcoming week the first 2004 supplement of IGTSS will be mailed to subscribers. The supplement is made up of two new binders, with, among other things, updates on Australia and Greece. The next supplement will be published in October 2004 and will contain several new chapters (inter alia on the...
Source: Nolot BV
 U.S.: IRS Rules that Sports Team's Media Rights Are Depreciable Assets 16 June 2004 
In a Technical Advice of 6 February 2004, released on 11 June 2004, the U.S. Internal Revenue Service has determined that certain media rights in connection with a sports franchise, previously determined to be nonamortizable, are "in the nature of goodwill" and should be classified as a Class IV asset...
Source: Rijkele Betten
 Denmark: Tax treatment of pension plans for sportsmen 3 June 2004 
It has been reported that the Danish Parliament has approved legislation regarding pension plans for sportsmen. Sportsmen can take out a pension plan under which the first pension instalment must be paid before the age of 40 during a maximum period of 10 years. The contributions are tax deductible and...
Source: Bill L 111/2004
 Netherlands: Critical evaluation of artists and athletes (wage) tax regime 31 May 2004 
As of 1 January 2001 the Netherlands Wage Tax Act contains a special tax regime for artistes and athletes. The Netherlands government has published an evaluation of the tax regime for the period 2001 – 2003. Although the theoretical concept of the regime is appreciated (inter alia the possibility to...
Source: Netherlands Ministry of Finance, 12 May 2004, WDB 2004-00270M
 The Netherlands: No. 10 Football player qualifies for application of the socalled 30% tax regime 9 May 2004 
On 18 March 2004 the Court of Appeal of Amsterdam decided that a central mid-field football player (referred to as a No. 10 player) was entitled to application of the socalled 30% tax regime. Under this regime, the taxpayer may receive a tax-free deemed “reimbursement“ of 30% of his gross taxable salary....
Source: Decision Court of Appeal of Amsterdam, 18 March 2004, No. 03/0113
 Australia: Grants and price money of professional athlete not subject to income tax 4 May 2004 
An Australian former Olympic athlete (a javelin thrower) combined a full time employment in the Queensland Police Force with sports activities. For the latter activities she received prize money, sponsorship payment, government grants and appearance fees (of over 120,000 AUD). The Judge at first instance...
Source: Stone v. FCT [2003] FCAFC 145
 United Kingdom: Appeal of Agassi on the basis of territoriality argument denied 16 April 2004 
Mr André Agassi is an international tennis player ordinarily resident and domiciled outside the United Kingdom. During the relevant tax years he was a resident of the United States. He had set up a company, Agassi Enterprises Inc. controlled by himself and through the Company he entered into endorsement...
Source: www.courtservice.gov.uk/judgmentsfiles/j2381/agassi-v-robinson.htm
 The Netherlands: Court denies application of special income tax regime to left-footed defense player 14 April 2004 
A Netherlands Court of Appeal refused to apply for the year 1999 the special Netherlands income tax regime for incoming employees to a professional left-footed defends football player. Under the special income tax regime, basically 35% of the taxpayer’s income could be considered as a tax-free reimbursement...
Source: Rijkele Betten
 SPAIN: New income tax regime for non-resident expatriates 29 March 2004 
As of 1 January 2004 non-resident expatriates who take up residence in Spain, can in certain circumstances and under certain conditions opt for the application of a special tax regime (Article 9, paragraph 5 of the Personal Income Tax Act). Such taxpayers may for a period of 6 years (including the year...
Source: Rijkele Betten
 UK: Retirement Ages for UK Professional Sports People under the New Tax Regime 22 March 2004 
The UK government is to introduce measures in April 2006 for the simplification of the taxation of pensions. These measures will have implications for professional sports people in the UK because one of the measures proposed is the abolition of special rules for some sports professionals who currently...
Source: Amanda Thompson, Jones Day, London
 Netherlands court cases on whether Article 17 of tax treaties applies to the athlete’s basis salary 17 March 2004 
Recently there have been two Netherlands Court of Appeal cases on the issue of whether tax treaty articles in Netherlands tax treaties dealing with athletes (and artistes) are also applicable to the basis salary of the athletes. In the two cases at hand, the athletes received a regular fixed basis salary...
Source: Rijkele Betten
 Italy and the European Commission agree upon “Football Saviour Decree” 15 March 2004 
The European Commission and the Italian Government are reported to have reached an agreement on the changes to the special tax rules introduced by Law no. 27 of February 2003 (so-called "Football Saviour Decree") which were held by the Commission to constitute a State Aid (see our website news of 15...
Source: Marco Lombardi, Jones Day, Milano
 Italy: EU Commission investigates new Italian tax measures in favour of sport clubs 27 February 2004 
In January 2004 the European Commission asked the Italian Government for some clarifications on certain rules applicable to sport clubs that were introduced, or extended, with Law no. 350 of December 24, 2003 (“2004 Italian Finance Act”).

The EU Commission is investigating whether the provisions...
Source: Marco Lombardi, Jones Day, Milan
 Greece: Withholding tax of 20% for income from agreements with Athens Olympic Committee 2004 5 February 2004 
In December 2003 a new law containing specific tax provision for the period of the Olympic Games has been enacted (law 3207/2003).

This law regulates only the taxation of legal persons or individuals who acquire income from activities carried on in Greece during the Olympic Games within the framework...
Source: STAVROPOULOS, TSIRI & PAPADOPOULOU LAW OFFICE, Athens, Greece
 Netherlands: Professional football club NAC considered to be an institution for the public benefit 2 February 2004 
A Netherlands Court of Appeal has decided on 13 November 2003 that the professional football club NAC (based in Breda) should for the purpose of the Netherlands inheritance tax be considered as a institution for the public benefit. Therefore the receipt of an inheritance by the club NAC was subject to...
Source: Rijkele Betten
 PORTUGUESE GOVERNMENT GRANTS TAX EXEMPTION FOR UEFA EURO 2004 27 January 2004 
The Portuguese Government has granted a total exemption on Personal Income Tax (Imposto sobre as Pessoas Singulares) on income earned between 1 January and 31 July 2004 by non-resident football players, coaches and other agents involved in the European Football Championship to be held in Portugal this...
Source: Paulo Núncio, Morais Leitão, J. Galvão Teles & Associados, Lisboa
 Italy: Special accounting and Tax rules for Sport Clubs under the scrutiny of the EC Commission 15 December 2003 
In November 2003 the European Commission probed certain measures for professional sport clubs introduced by the Italian Government back in February 2003. These measures are contained in Law no. 27 of 21 February 2003, so-called “Football Saviour Decree” but in fact they are applicable to...
Source: Marco Lombardi, Jones Day
 Germany: Bill contains limitation to tax-free overtime premiums 28 November 2003 
The German wage tax act contains a tax exemption for income earned in overtime. Apparently this tax relief could be used by e.g. German football clubs regarding matches played at night or on Sunday. A pending Bill contains a proposal to amend the wage tax act so that this relief is only available for...
Source: Rijkele Betten
 The Netherlands: Evaluation of its tax regime for income from sports activities soon to be expected 23 November 2003 
The last years the Netherlands tax legislator has been very active in reforming the tax system for income from sports activities. As a consequence, more and more income that is related to sports activities exercised in the Netherlands is considered to be covered by these provisions. The Royal Netherlands...
Source: Rijkele Betten
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