Federal Tax Research 10th Edition by Roby Sawyers,William Raabe,Gerald Whittenburg,Steven Gill

Exercise 107

Hardy Kicker plays on the U.S. men's soccer team. He recently played in a soccer tournament in South Africa. The South African tournament organizers will pay Hardy $20,000 to play. Determine whether payments to Hardy by the organizers will be subject to tax withholding under South African statute, and separately whether they be subject to withholding considering the U.S.-South Africa tax treaty.