TaxCorporate TaxFrench tackle sports tax loophole

French tackle sports tax loophole

Image rights relief which saw French clubs lighten their social security and employment tax liabilities in the firing line

Moves to close a French tax loophole have been slammed by Gallic rugby chiefs
.

The droit à l’image collectif (DIC), allows clubs to treat up to 30 per cent
of a player’s income as “image rights”, the player’s share of revenues from
selling club strip and other lucrative spin-offs, rather than salary, but
reforms in the French National Assembly are aiming to end the relief.

French clubs used the relief to offset social security and employment taxes.

Mourad Boudjellal, the president of Toulon the rugby club which boasts
English talisman Jonny Wilkinson on its books, faces a huge bill,
The
Times
reported.

“It [the tax changes] will cost me between €500,000 and €600,000 for this
season and at least €1m next year,” Boudjellal said.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

1m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

3m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

4m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

7m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

8m Alia Shoaib, Reporter