Stars who presented awards or performed at the Brit Awards earlier this month (FEB07) are facing tax bills of up to GBP6,000 ($11,780) for the goodie bags they received.
Performers at the London ceremony, including the Red Hot Chili Peppers, Oasis and Amy Winehouse, and awards presenters such as Steven Tyler, ERIN O'CONNOR and SOPHIE ELLIS-BEXTOR are liable to pay tax on the GBP15,000 ($29,460) worth of free gifts they were given.
The bags featured a variety of luxury goods including UGG boots, Damaris silk underwear and a Nintendo Wii games console.
A spokesman for the UK's Inland Revenue says, "Gifts can be taxable if they are given on condition of the recipient's profession or work. So if the Brits gifts were only given to presenters and performers, then they will have to pay tax on them."
A Brits insider says, "They may earn a lot but GBP6,000 for stuff they didn't even ask for seems a bit steep. The organisers had no idea. It is all a bit embarrassing really."
The Academy Awards have withdrawn goodie bags from tonight's (25FEB07) ceremony in Los Angeles after the US tax department announced they would be subject to tax.