Italian Revenue Agency Reaches Agreement With National Soccer Federation


By Global Tax Weekly

This week, I’ll be looking at the often-murky world of soccer. It is the planet’s most-watched sport, but it’s never far from controversy, as the FIFA corruption scandal demonstrated. It also has its fair share of run-ins with the taxman too, with the recent raids of two prominent English soccer clubs the latest such development.

However, this is an issue of wider significance, rather than one confined to the tax controversies at the top end of sport. And, appropriately enough, it also touches on the subject of tax competition too.

Some governments are more than willing to offer tax concessions to attract highly skilled – and highly remunerated – workers and investors to their shores. But, to my knowledge, such concessions rarely seem to be extended to professional sports people, including in the soccer world.

The issue of executive pay, the king’s ransom that some soccer players receive every week, and taxation is highly divisive. Some people are very comfortable with the idea that those on mind-boggling salaries should pay half of their income in tax. Others argue that, in principle, rates of income tax approaching 50 percent or more are wrong, even confiscatory. The reality remains, however, that businesses and top-league soccer clubs (mostly those in Europe) can struggle to recruit top talent when high rates of tax are in place.

Maybe harsh realities call for pragmatic solutions. Spain, for example, came up with the “Beckham Law,” (named after the famous soccer player when he moved to Madrid) whereby individuals can choose to be taxed as a non-resident for a temporary period. Italy deals with these issues in a somewhat less adversarial way, through the agreement of an annual tax protocol between the revenue agency and professional clubs. So perhaps other professional leagues would also benefit from similar measures and codes of conduct.


For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look





Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>



RELATED ARTICLES AND INFORMATION

OECD Releases BEPS Action 14 Peer Reviews

On February 16, the OECD released the final batch of BEPS Action 14 peer reviews, on the efforts of 13 jurisdictions to improve how...

EU Reports On Brexit Impact

The EU has been mulling over the anticipated economic impact of the Brexit split. Releasing its Winter 2021 Economic Forecast, the EU suggested that...

India Reduces Time-Period For Investigations

The Indian Government has announced its intention to reduce the time-period during which the tax authority can probe an individual’s tax affairs. Under the...