the Constitutional Council censors tax benefits for worldwide sports activities federations | EUROtoday

The Constitutional Council censored, Thursday December 28, the provisions of the 2024 price range supposed to draw worldwide sports activities federations, reminiscent of FIFA, to France, ruling that they ignored “the principle of equality” earlier than the tax.

Supported by Renaissance MP Mathieu Lefèvre, the modification rebutted on Thursday supplied for the exemption of worldwide sports activities federations from company tax and several other contributions (CFE, CVAE) for “their missions of governing sport or promoting the practice of sport”reminds the Council in a press launch.

This modification additionally promised an revenue tax exemption for workers of worldwide sports activities federations domiciled in France for 5 years. If the modification by no means talked about the International Football Federation (FIFA) by identify, it’s certainly the principle physique which appeared involved by this technique.

But by planning to grant these tax benefits “for the sole reason” that a global sports activities federation was “recognized by the International Olympic Committee” (IOC), “the legislator did not base his assessment on objective and rational criteria based on the goal he proposed”determine the sensible males.

An advanced return from FIFA headquarters to Paris

“Consequently, the Constitutional Council censures article 31 of the referred law as violating the principle of equality before public offices”, complicating a return of FIFA headquarters to Paris. Created within the French capital in 1904, FIFA moved to Zurich in 1932 and has positioned its primary headquarters there since 2007.

In their press launch, the judges additionally thought of that the allocation of regulated financial savings (Livret A, Sustainable and Solidarity Development Booklet, and so forth.) to the financing of the protection trade had no place in a legislation of funds, with out nonetheless excluding the adoption of such a measure in one other textual content.

Eleven others “legislative riders” – provisions not referring to finance legal guidelines – have been challenged by the Constitutional Council. Among these is article 208 of the price range “concerning the securing of the extraction of waste from potash mines in Alsace” and part 233 “relating to the creation of education support centers”.

“The censorship of those numerous provisions doesn’t prejudge the conformity of their content material with different constitutional necessities. It is open to the legislator, if he deems it helpful, to undertake such measures once more. by a vector aside from a finance legislation, they conclude.