Cycle star Stuart O'Grady's tax battle
Plano Dude
lawyer claims is trying to double tax him.
The gold medallist and former UCI pro Tour Team Saxo Bank captain is
claiming the tax office is trying to tax him for four financial years,
when he was actually living in France, and had already paid tax there.
It is understood O'Grady, who grew up in Adelaide but now lives in
Monaco, only spends about one month each year in Australia, including
when he competes in the Tour Down Under.
He has lived overseas since about 1994.
His lawyer, John Tucker, told the Federal Court the matter was
"primarily a dispute over residency", and he was confident the matter
could be solved through mediation. Outside the court he said he did
not know how much the dispute was over. "It's enough to warrant
argument but as I said to the Judge it's not enough for everyone to be
here," Mr Tucker said. Pro riders can earn millions of dollars per
year, or as little as euro150,000 (about $A200,000).
O'Grady is likely to be at the upper end of the scale.
Under the Income Tax Assessment Act, contractors who work overseas for
six months continuously are not taxed in Australia, Mr Tucker said.
"If he was taxable on his contract earnings as a cyclist in any way,
having already been taxed in France ... our next point would be that
they'd be exempt." O'Grady is among the best cyclists in the world,
and has contested the Tour de France 13 times, and won the Tour Down
Under twice, including the first time it was run in 1999. He came
second overall in 2009. He is also the only Australian to have won the
Paris-Roubaix one day classic, which he accomplished in 2007. He is
renowned for his strength, and is commonly seen leading the Saxo Bank
team during its Tour de France and other grand tour challenges.
O'Grady and Saxo Bank teammate Andy Schleck, who came second in this
year's Tour de France, were booted out of the Tour of Spain earlier
this month by their team manager for going out for a drink. O'Grady
was reported as being disappointed at the decision, which he said was
"harsh". "Mate, we stepped out of the team hotel at 10pm and stopped
for a couple of beers at a bar in the local piazza," O'Grady told The
Australian at the time.
"We had two beers, that's all."
It is rumoured that O'Grady will compete, with Schleck, in an as-yet
un-named Luxembourg cycling team next year. O'Grady's family has a
strong cycling history with his father Brian representing South
Australia in road and track cycling and his uncle competing at the
1964 Olympics. Interestingly, should the matter go to trial, it is
likely a judge will need to be flown in from interstate because
O'Grady's father is a CommCar driver, who is well known to the Federal
Court judiciary. The matter is scheduled to return to court on
Thursday, October 21, if mediation is not successful.
O'Grady's management declined to comment.
Plano Dude
raamman
let's hope he doesn't get screwed
Beloved Fred No. 1
> CHAMPION cyclist Stuart O'Grady is fighting the tax office, which his
> lawyer claims is trying to double tax him.
> The gold medallist and former UCI pro Tour Team Saxo Bank captain is
> claiming the tax office is trying to tax him for four financial years,
> when he was actually living in France, and had already paid tax there.
Inspiration for Novitsky to try the Capone approach if his other case
collapses.
Mike Jacoubowsky
> year's Tour de France, were booted out of the Tour of Spain earlier
> this month by their team manager for going out for a drink. O'Grady
> was reported as being disappointed at the decision, which he said was
> "harsh". "Mate, we stepped out of the team hotel at 10pm and stopped
> for a couple of beers at a bar in the local piazza," O'Grady told The
> Australian at the time.
So the whole drinking thing was an effort to gain sympathy with people on
the tax court back home?
--Mike Jacoubowsky
Chain Reaction Bicycles
www.ChainReaction.com
Redwood City & Los Altos, CA USA
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