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.

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