The taxpayer was a director and an employee of a family company as well as a director of other companies. In the income year, he received $600,000 in director's fees from the other companies and paid these on to the family company, claiming a deduction for the amounts paid over to the family company. He argued the payments were required under an agreement with the family company to allow him to accept directorships only if the proceeds were paid over to the family company. Can he deduct the amounts paid to the family company? (See Service v FCT [2000] FCA 188.)