Tax deal puts Club in mood to buy
The Hong Kong Jockey Club emerged with two victories on the opening day of the Gold Coast Magic Millions sale in Australia yesterday, but found defeat at the hands of a group of Hong Kong owners.
The Jockey Club organised a sale-morning registration with the Australian Taxation Office, which will allow it to escape payment of the 10 per cent goods and services tax (GST) on its yearling purchases. The agreement brings Australia into line with other countries where sale horses are to be purchased and ended the Jockey Club's veiled threat to cut the number of its purchases in Australia.
The second win came when the Jockey Club emerged with a purchase for its 2003 International Sale, a A$360,000 colt from the final Australian crop of super stallion Danehill.
Lot 135, a bay colt from the Canadian mare by Secretariat, Secret Truth, was knocked down to the Magic Millions auction company as agents but Jockey Club director of racing Winfried Engelbrecht-Bresges later confirmed the Club as the buyer.
'Now that we have resolved the problem with the GST, the colt will remain in Australia for his early education,' Engelbrecht-Bresges said. 'He was one of only three horses we bid on but we weren't so keen to spend the half a million Australian dollars it took to buy each of the other two horses.'
The Jockey Club was underbidder on Lot 155, also a Danehill out of Sierra Finch, which was knocked down to Asian Bloodstock Services, reported in the Australian media as a group of 'low-profile Hong Kong owners'.
Engelbrecht-Bresges said the first day of the sale was something of a disappointment with prices falling generally. 'The sale appears to be down at this early stage and there have been a lot of buybacks by the vendors, too, which has had an impact on the sale,' he said.
The top price paid was A$700,000 by the British Bloodstock Agency's Adrian Nichol for a Danehill filly which will be trained by Tony McEvoy at David Hayes' Lindsay Park operation.
Aside from lots 135 and 155, Hong Kong interest was hard to find, although the SAR-based Grandway Racehorse Company paid $A50,000 for an Honour And Glory-Port colt.
The 969-lot sale continues until Tuesday.
