Players face tax probe in cap audit
The Australian
August 14, 2014 12:00AM
Brent Read
Senior Sports Writer
THE NRL has warned players at the centre of the salary cap probe into Brisbane that they may be forced to produce documents such as their income tax returns or other financial records as part of the investigation.
Salary cap auditor Jamie LOste Brown issued the thinly veiled threat via letters to the players, who are being interviewed over alleged salary cap *irregularities at the Broncos between the 2011 and 2014 seasons.
In due course, it may be necessary for me to invoke the protocol under part 9.2 of the PCR rules to compel production of such documents and other records (including income tax returns) as are necessary for me to complete my investigation, LOste Brown wrote.
For the time being, I am content to proceed on the basis that you may choose to produce them voluntarily.
It is understood the Rugby League Players Association is aware of the letters being issued and is in the process of following the matter up. It could comment on the situation as early as today.
It is also believed the NRL would be required to meet certain requirements if it were to call for tax and other financial records, including an agreement to allow the players to use independent accountants.
Amid an apparent lack of concrete evidence of anything untoward having taken place, it would appear to represent the last throw of the dice for the games governing body.
As many as five Brisbane players have been interviewed by LOste Brown and integrity officer Alby Taylor as part of the investigation, which is running alongside inquiries being at the Gold Coast into potential salary cap breaches at that club.
Broncos fullback Ben Barba and prop Martin Kennedy both of whom joined the club this season are among current Brisbane players to have had deals put under the microscope.
Canberra fullback Anthony Milford was interviewed yesterday over his negotiations with the Broncos he will cut short his time at Canberra to join Brisbane next season.
Milfords decision raised eyebrows, especially after he knocked back another attempt from the Raiders this season to keep him at the club.
It is believed the Canberra fullback is confident he will have no case to answer as the probe is related to alleged offences from 2011-14, and he will not join the team until next season. Kennedy is also comfortable his deal is in line with salary cap rules.
The Broncos are pressing for the matter, which came to light when the club informed the NRL of potential salary cap irregularities in late May, to be finalised before the end of the current campaign, allowing them to start next season with a clean slate.
Under NRL rules, lack of evidence is not an impediment to sanctions being enforced. Rather, the NRL can act against clubs if the evidence either directly or inferentially supports the conclusion that on the balance of probabilities, the contravention has occurred.
NRL chief executive Dave Smith gave little away yesterday when asked for an update on the cap salary cap probes into both Brisbane and the Gold Coast.
The process is under way, he said. I think its arms length for me.
The integrity unit is doing the job we expect it to do, asking all the right questions and working through the investigation.
When its done, its done, and at that point there will be a recommendation made to me.
The salary cap investigation has been an unwanted distraction for the Broncos as they attempt to maintain pace with the top eight.
The club is in 10th place heading into tonights game against South Sydney and anything short of a victory would most likely sound the death knell on hopes of finals football.
