Summary
A discovery assessment was validly made, and losses claimed in respect of developing footballers were not allowable.
Background
The appellant, a football agent, was introduced to a soccer academy (‘Bafana’) in South Africa. Bafana was financed by external individuals such as the appellant who were given the opportunity, in return for providing finance, to pick players who were being trained at Bafana, and to secure an interest in any future transfer fees made by Bafana from the players picked.
The appellant put funds into Bafana and picked three players in July 2009 from the academy. His investment was financed through a loan. The appellant’s tax return for 2008/09 included a claim for losses in relation to Bafana and a business of football development. HM Revenue and Customs (HMRC) identified the football academy as the ‘Bafana scheme
