FIFA retains low-tax, non-profit status despite billions
Football’s world governing body, FIFA, will retain its status as an association, meaning it will not be taxed like a normal company, the Zurich cantonal authorities have ruled.
This content was published on
2 minutes
swissinfo.ch/mga
Português
pt
FIFA mantém status sem fins lucrativos e sem impostos
The local government has rejected a motion from the leftwing Social Democratic Party to force all entities with a turnover of more than CHF1 billion ($1 billion) to pay standard corporate tax rates. The money passing through FIFA’s coffers tripled this benchmark last year.
Zurich-based FIFA’s stated purpose is to distribute the income it receives from the World Cup and other events to national football associations and other projects to enhance the game globally.
Sports bodies based in Switzerland enjoy association status. Associations not obliged to register with the state or to publish their accounts. They are granted tax breaks and flexible legal terms that allow them to govern their own affairs.
A 2015 study stated that while such entities are not taxed at corporate levels, they indirectly bring around CHF1 billion annually to the Swiss economy. This is because employees are taxed and because the 45 sporting bodies are serviced by local companies.
But this argument failed to impress Zurich Social Democrat Stefan Feldmann, who said: “It’s a mystery to me how FIFA can be described as a non-profit association. Nobody on the street understands that. This runs counter to a sense of justice.”
FIFA has been embroiled in numerous corruption scandals stretching back over the last few years.
Privileged access?
Canton Zurich’s decision to retain FIFA’s non-profit status follows hard on the heels of allegations that the sporting body’s Swiss president, Gianni Infantino, has privileged access to the Swiss attorney general, Michael Lauber.
The claim was made by the Football Leaks investigative journalism team, which accused Infantino of arranging secret meetings with Lauber, whose office is investigating allegations of corruption against FIFA.
FIFA insists there has never been any impropriety in its dealings with the attorney general’s office. However, Swiss parliamentarian Hans Stöckli, told Swiss public television, RTS, at the weekend that he would raise the issue with a committee that has oversight over the activities of the attorney general.
Swiss justice minister hopes EU reform will reduce irregular migration
This content was published on
The European Union’s (EU) New Pact on Migration and Asylum aims to curb irregular migration within Schengen, Justice Minister Beat Jans said on Tuesday.
Swiss electricity supply outlook positive despite uncertainties
This content was published on
Thanks to well-filled gas stores in Europe and increased availability of French nuclear power, the Swiss Federal Electricity Commission is optimistic.
Finance minister wants Swiss banks to hold more equity
This content was published on
Finance Minister Karin Keller-Sutter has repeated calls for banks and their holdings in subsidiaries abroad to hold more equity.
Telecoms sector kept Swiss competitions regulator busy in 2023
This content was published on
Last year, the Swiss Competition Commission (COMCO) conducted 27 investigations and initiated 17 preliminary investigations.
This content was published on
Although Swiss International Air Lines (SWISS) achieved higher revenue at the start of the year, it suffered a dip in profits.
40,000 signatures against animal testing in Switzerland
This content was published on
Switzerland should do away with “restrictive” animal testing and should become a model for innovative, effective, and pain-free scientific research.
More than 45,000 signatures in favour of federal funding for UNRWA
This content was published on
The Foreign Affairs Committee of the House of Representatives (FAC) is expected to decide on the funding of the UNRWA at the beginning of the week.
This content was published on
At the end of January 2024, 6,881 men and women were behind bars in Switzerland. Almost 95% of all places were occupied, the highest number since 2014.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
FIFA boss Infantino seeks re-election
This content was published on
Infantino, a former General Secretary at UEFA, was voted into the position in February 2016 promising a raft of reforms to end years of corruption at football’s world governing body. He became a last-minute contender for the post after his boss, Michel Platini, bowed out amid claims of corruption. “We have a vision for football.…
Olympics and World Cup windfall boost Swiss economy
This content was published on
Switzerland’s economy grew robustly in the first quarter as global sporting events helped fill the coffers of the Swiss-based IOC and FIFA.
Reports of huge FIFA salaries despite reform pledge
This content was published on
Despite promises of reform, world football governing body FIFA reportedly paid its ruling council nearly $10 million (CHF9.8 million) last year.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.