Beckham Bends Business Expenses
June 6, 2006
One of the only defensible deductions from income are expenses that are directly related to the production of income, therefore legitimate business expenses are a justifiable deduction in tax policy terms.
With this in mind, an interesting story from England details how soccer superstar David Beckham expenses lucrative purchases that enhance his rock star image:
Any purchases which contribute to a footballer’s public image can potentially be written off as a legitimate business expense. It means that Beckham, who brings in more than £17m a year by trading on his status as a global style icon, does not necessarily have to dip into his £70m personal fortune for his diamond ear studs, designer wardrobe and frequent trips to the hairdressers.
While it may appear outrageous that Beckham can get a tax break for these items it is defensible and in accordance with the principles of sounds taxation. A good tax system is fair and treats everyone equally. Moreover, all legitimate business expenses are treated the same. So if a businessperson can write off the cost of posh dinners with clients, it stands to reason Beckham deserves his write-offs as well. Besides, if Australian prostitutes can deduct their expenses, why can’t Beckham?