PRO. GOLFER'S WINNINGS

Poverty Bay Herald, Volume LXIV, Issue 19335, 27 May 1937, Page 8

PRO. GOLFER'S WINNINGS

BETS ON GAMES COMPSTON'ft £IOOO A YEAR NOT LTABLE FOR TAX LONDON, March 19. If a professional golfer makes a bet on his game lie is not liable to pay income tax on his winnings. This was the outcome of a case which came before .Mr. .Justice Lawrence in the King's Bench Division yesterday.

The case centred round the winnings of Archie Cotnpston, the golfer, who was the Duke of Windsor's favourite professional.

Tax on these winnings was claimed by the Inland Revenue authorities on the ground that they were made in the course of the goiter's professional vocation.

The General Commissioners for Income Tax—a body of experts who decido disputed tax, matters—discharged an additional assessment of £IOOO made on Archie Oompston's income. Against this ruling the revenue authorities appealed. The Attorney-General, Sir Donald Somervell, K.C.. supporting the appeal, said that in the case before the court the commissioners discharged an additional assessment of £IOOO for the year ended April 1923. Ton Years Involved The assessment had been made to include the balance of gains over tosses arising out of the private games of golf played by Archie Compston. It, was stated in the special case that Compston had for over ten years habitually engaged in private games, principally with amateurs for beta ot varying amounts, the games being played on handicap lerms. These matches sometimes took place as often as three of four times a week, and as much as £SO and £IOO was sometimes wagered on the result. During the past 10 years Compston had derived substantial sums of money, and at times such receipts amounted in the aggregate to approximately J3ICOO a year, after deducting sums lost. If Compston were not a professional, but were only a man who played good golf, the position would be. different. Even if he then played three or four times a week and made an aggregate of about £ICOO a year by bets on his games, it might then lie difficult to gel that degree of organisation which brought the case within the "bookmaker principle."' If was the connection with Compston's vocation that made his winnings taxable. "Independent"

Mr. Justice Lawrence asked uuout the contract oi a golt professional.

Sir Donald Somervell: lie lias a retaining fee and he has a right to sell clubs and balls, but 1 am not sure it would be a contract of employment, in most of his activities he is m a lairly independent position. .Mr. Justice Lawrence: But he must instruct if people ask him to. Betting is a matter entirely of his own volition.

Mr. Raymond Needham, K.C. (for Compston)! submitted that it was only looseness of thought which led to the view that moneys coining out of bets could be regarded as coining out of a vocation. The bets had no reference to his job. The job merely gave him the opportunity of making them. He was in the same position as the ship's officer who made hets on the ship's run during f lie dav.

It could hardly"l6 iiria'gined 'that the result of that 'would, bo' regarded as ■"■t of the income of the officer for- tax purposes. The people who played with Archie Compston on these occasions were not playing golf for golf's sake: they were olaying golf with a strong gambling interest, and were playing it for that reason. If Counsel Betted? "On the argument of the Crown, if I may say it without irreverence," said Mr. "Needham, "if the Attorney-General and I had a bet on the result of this case that would have to be brought into the accounts, of both of ns for income lax purposes. ' (Laughter.) Mr. .lustice Lawrence, giving judgment, said he thought that the winnings on bets on games of golf played, by Archie Compston did not arise from his employment or vocation and were in no way analogous to gratuities for services rendered. ' If it were necessary, lie would hole! also that there was nothing to support the view that Compston was carrying on a business by betting on these private games.

The appeal of the revenue authorities was dismissed.