British court rules Agassi owes $50K in taxes on endorsements

AP ^ | 03/17/04

[nypokerface]

LONDON -- Andre Agassi was ordered Wednesday to pay British tax on income earned from endorsements, a ruling with implications for other sports.

Judge Sir Gavin Lightman of the London High Court said Agassi had to pay about $50,000 in taxes on income paid by Nike and Head Sports to his U.S.-based company Agassi Enterprises Inc.

British tax authorities argued that because Agassi spent time each year competing at Wimbledon and other tournaments in Britain, that activity was relevant to his endorsement earnings.

Agassi's lawyers had appealed a tax demand for the 1998-99 tax year.

But Lightman agreed with tax officials that Agassi was liable for tax on income connected to his activities in Britain, even if the paying and receiving companies had no tax presence here.

[Concerto in D]

Andre's been my total favorite for so many years. I shall be heartbroken when he retires.

[BikePacker]

Using this convoluted logic, isn't Agassi responsible for the U.K. taxes on ALL HIS EARNINGS in ALL TOURNAMENTS?

[JBCiejka]

I can't believe this. Has every other golfer, tennis player had to pay these taxes. Why would it matter what he earns in another country, that especially is not operating in that country. I can see paying taxes for any winnings he were to win in that country, but that would be it. They could go back to every player and back tax them on all of their earnings, no matter where they are from.

[Delta Dawn]

Wasn't this issue settled already. A little thing called the American Revolution?

Doesn't this amount to taxation without representation?

Why doesn't the U.S. government step in and say, "Excuse kind Barrister, but you would PLEASE LEAVE MY CITIZENS ALONE???"

[krb]

Damn...remind me never to go to the UK to pursue business leads.

[BluH2o]

... remind me never to go to the UK to pursue business leads.

Perhaps you want to start here in the good ol' US of A. Many cities tax athletes who are participants in professional sports, such as NFL football, when they play in their city. Same goes with entertainers. Doesn't matter if you're a visiting team ... or a entertainer doing a one night gig ... you pay.

[krb]

Dayum!