Fed: Tax shock awaits Block contestants: tax expert
By Charisse Ede
MELBOURNE, Aug 11 AAP - Contestants on Channel Nine's hit television series The Blockcould be in a for a shock from the taxman.
One couple is set to walk away from the top-rating series this weekend more than $100,000richer, when the renovated Bondi apartments finally go under the auctioneer's hammer.
The four couples in the series are also able to keep all money the apartments fetchabove the $595,000 reserve price when they are sold.
But tax experts today warned that almost half of all money won on the program couldbe lost in tax.
National Tax and Accountants' Association president Ray Regan said that under IncomeTax Ruling IT 167, anyone who made regular appearances in radio or television programs,either as an artist or contestant, was liable to pay tax on their prizes.
Mr Regan said The Block contestants would be taxed 48.5 per cent of their prizemoney,which could result in some being left with a tax bill in the tens of thousands of dollars.
Mr Regan said this situation applied to all such competition winners - including showslike Big Brother - and was "an absolute outrage".
He said all money won in television competitions should be exempt from tax.
"You are taking the lion's share of their prize money," he said.
"Here we have a situation where four couples have opened their lives to complete publicscrutiny only to find out that the taxman may end up taking almost half of their prizesin tax.
"Contestants of these reality shows will now probably think twice about participatingwhen they realise that they may lose almost half of prizes in tax."
It is the latest blow to the series. Yesterday it was revealed a building inspectorhad found all four apartments breached building standards.
The four apartments will be auctioned this Saturday and Sunday, with results airedin the usual timeslot at 6.30pm (AEST) on Sunday.
Comment was being sought from Channel Nine.
AAP ce/dk/drp/de
KEYWORD: BLOCK TAX
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