A serious defeat for the world football association Fifa at the turn of the year: The Constitutional Council, the highest judicial authority in France, has withdrawn the government’s planned tax break for international sports associations. This means FIFA’s plans to move to the Seine are in jeopardy, as is the vision of Head of State Emmanuel Macron, who wants to transform France into a tax haven for world sports associations in the wake of the 2024 Summer Olympics.
Macron’s presidential majority had introduced an amendment to the 2024 budget that provided massive tax benefits for sports associations such as FIFA. The world association, whose scandal-ridden boss Gianni Infantino is often investigated by the Swiss judiciary, has had a branch in the Hôtel de la Marine in the center of Paris since 2021; the domicile belongs to the Emir of Qatar, the 2022 World Cup host.
Macron’s planned measures envisaged exempting organizations such as FIFA from corporate tax and other taxes such as property and corporate VAT. In addition, FIFA employees who reside in France should be exempt from income tax for five years.
The constitutional judges see this as a disregard for tax equality. According to the judgment available to the SZ, the legislature “did not rely on objective and rational criteria” when granting these tax advantages – but solely on the fact that a sports association “is recognized by the International Olympic Committee”.