Rugby League: Tax office moves in to check NRL clubs

Every National Rugby League (NRL) player from the past five years will be audited by the Australian Taxation Office (ATO) following the under-the-table payments and other salary cap rorts, Australian papers reported today.

The tax office is ready to move on recent events that have shaken the NRL, launching a full-scale investigation to find unpaid taxes.

Players, clubs and player managers are all targets for undeclared income. The investigation is set to have far-reaching implications, with one source saying of some clubs: "They're in a lot of trouble."

The ATO has contacted the NRL's finance director Ed Farish and salary cap auditor Ian Schubert to tell of their intent to access NRL financial records.

"We've had initial contact from the tax office but they haven't as yet made an appointment to come in and see us," said acting NRL chief executive Graham Annesley.

"When they do that we will fully co-operate with them. Apart from that, there is not much more we can say."

Tax office officials would not comment to The Daily Telegraph last night.

But sources confirmed their interest has been spurred by the recent Bulldogs salary cap revelations, as well as suggestions of cash payments to other players within the NRL.

Among the areas the tax office will investigate are player income splitting, players registering illegal companies, cash and prizes, and incorrect tax returns from previous years.

The overwhelming mood among the rugby league fraternity yesterday was one of welcome, but as one chief executive said privately: "What do you want me to say? It's the tax department."

In the past Australian league players have cheated the salary cap and their income tax through such methods as receiving poker machine money and door money from club discos.

Bulldogs chief executive Steve Mortimer, who took over running the club after last year's disaster, said the Bulldogs now have an open door policy as far as investigations into player payments are concerned.

"If there is going to be an audit then they are welcome here," Mortimer said.

There is no suggestion that the audits, while weeding out income tax cheats, will lead to more clubs being busted for cheating the salary cap.

Clubs will also be investigated for third party agreements and tax inconsistencies, as will player managers.

"I can't speak for clubs but I wouldn't imagine there would be any problems," one player manager Sam Ayoub said."

- NZPA