Vocation-linked receipts are not taxable where gambling winnings arise from private bets and not payments for services.

Winnings from private bets on games played by a professional golfer were held not to arise out of his employment or vocation because there was no evidence the payments were made substantially for his professional services, no organised betting business or separate vocation existed, and the receipts exhibited features of gambling (possibility of loss, disparity with ordinary fees). Mere opportunity provided by the vocation did not convert private bets into remuneration. Operative effect: such betting winnings are characterised as private gambling receipts, not taxable as income arising from the vocation.

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Issues: Whether the winnings from bets on private golf games made by a professional golfer arise out of his employment or vocation and are taxable under the rule applicable to Case II of Schedule D.

Analysis: The issue requires determining whether the receipts from betting are payments arising from the respondent's vocation as a golf professional or whether they are receipts arising from bets independent of the vocation. Relevant considerations include whether the payments are akin to gratuities for services rendered (i.e., substantially given for the respondent's services as a professional golfer), whether the betting activity constitutes an organised business or separate vocation, and whether mere opportunity furnished by the vocation converts otherwise private bets into receipts arising out of employment. The facts show winnings from private bets on games played by the respondent over a number of years, without evidence of an organised system or that the payments were given substantially in respect of professional services. The disparity between ordinary professional fees and sums won, the possibility of losses, and lack of organisation were treated as indicating that the receipts were from bets and not remuneration for the vocation.

Conclusion: The winnings from the bets do not arise out of the respondent's employment or vocation, are not analogous to gratuities for services rendered, and the betting activity was not an organised business; accordingly the receipts are not taxable as income arising from the vocation.

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