Art & Design

Jul 16, 2012

Tax Office has David Walsh by the short and curlies

The ATO is chasing professional punter and millionaire arts enthusiast David Walsh hard for $37.7 million in unpaid tax. Crikey has been told the case against him is strong, reports Chris Seage.

Mega-successful professional punter and millionaire arts enthusiast David Walsh must think we are all stupid. He wants us all to believe that his little punters’ club comprising him and 18 other hand-picked professional punters that generates a turnover of more than $2.4 billion dollars annually is not a business but a mere hobby.


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14 thoughts on “Tax Office has David Walsh by the short and curlies

  1. Gavin Moodie

    Thanx for this report and analysis, which I found informative.

  2. Phaser Norton

    This is quite a nasty article. For one, I don’t believe that Crikey can establish that Walsh is not compliant. Second, it is a gross violation of ethical principles (presuming that Crikey recognises those) to publish such violent assertions. Thirdly, your article confirms that Walsh does indeed have formal advice from the ATO that he has a private and binding ruling that the ATO must now prove to be based on a falsehood.
    I prefer that courts decide this stuff. If the ATO is leaking this then it tends to prove they don’t have a case and are blackmailing.
    Crikey should be regulated. By an editor with ethics.

  3. The Old Bill

    I’m with you Phaser.
    My betting is conducted in a systematic, organised and “businesslike” way and is engaged in for profit. I find it offensive that my skill or judgement would be drawn into it, as the ATO has let me claim significant business losses from several of my other failed business ventures. If Walsh loses, I will be claiming my lottery ticket purchases as a tax write off at the earliest opportunity:)

  4. Wilson Ralph

    I am with Old Bill and Phaser.

    I find it interesting that the ATO are attempting to bolster what appears to be a weak case, one without precedent, by selective leaking.

    Crikey, you state much as being fact.
    “we know the following from Federal Court documents and what is on the public record……

    2 Destroying business records and using encryption software to attempt to hide details of their $2.4 billion global gambling business.
    3 Conducting management discussions orally to avoid “leaving a paper trail”.”

    These would appear to be mere untested assertions by ATO and not what “we know’

    Will Crikey continue to be the ATO’s dupe

  5. phjk

    No mention by Chris Seage of the good work David Walsh has done in our community. He is one of the most generous cultural benefactors this country has seen and the ATO is going after him? What gives? The ATO gave Walsh clear advice that his earnings would not be taxable and has now decided to have a crack at trying to squeeze a bit of extra revenue? You think there’d be some real tax cheats the ATO could have a go at, people who don’t do anything for the community, people who are genuinely greedy.
    This article is petty and nasty and I agree with Wilson Ralph that it seems odd that Crikey would publish something like this.

  6. Steve777

    On the information presented here, it seems that the gambling operation described is a business, but of course the courts will decide that. Should there be credible evidence of documents being destroyed to avoid tax, the courts will also deal with that. The Judges will not be influenced by articles in crikey or any other journal. Further, the work done in the community by Mr Walsh sounds as though it’s likely to be tax deductible. The Tax Office and, if necessary, the courts will rule on that as well.

    So what’s the problem?

  7. Hugh (Charlie) McColl

    Phaser and Wilson – what’s this about “leaking”? Are you just making stuff up?

  8. phjk

    I don’t know David Walsh and I don’t know the minute details of this case but I do know that he’s not stupid and that he corresponded at length with the ATO when he began his operation and received an assurance that his earnings would not be taxable.
    Since then he has ploughed tens of millions of dollars into the creation of MONA in Hobart which is free to the public. This is now one of the most interesting and dynamic galleries in the world and represents an unprecedented contribution to Tasmanian and Australian cultural life. The ATO’s case against him may destroy all this – but hey, what’s the problem??

  9. sebster

    Look basically, people like Walsh and MONA and the ATO can bugger
    off. Not scientific, I know, but really, who cares.

  10. Bob Simpson

    Outrageously poor journalism, picking bits out of court statements and quoting them as fact.
    Crikey I expected more.

    More importantly a key issue has been missed here that should scare the crap out of all of us. Random U-turns by the ATO and retrospective decisions smells real bad for any type of business or individual. By all means if they are a business tax them and let the country have a share but you don’t decide that years after the fact. Can’t imagine the ATO would be taking any interest in whether it is a business or not if they were losing.

    We need cases like this to reign the ATO in or they just keep making such unjust decisions. There is no place to retrospectively tax people after a change of heart on seeing they don’t have losses to claim.

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