Tax

FIFA May Lose Swiss Tax Advantages As Bribery Allegations Swirl

Tom Burroughes Group Editor London 9 June 2011

FIFA May Lose Swiss Tax Advantages As Bribery Allegations Swirl

FIFA, the governing body for world soccer, could lose its tax benefits in Switzerland because of accusations that officials bought and sold votes in the run-up to allocation of World Cup tournaments, a move that would hit the body’s $1.3 billion in annual revenue, reports Bloomberg.

The group is a tax-privileged association in Switzerland, shared by groups such as folk dance clubs, the news wire noted. FIFA may lose that status after accusations of bribery and vote buying, it said.

Swiss lawmakers have passed a motion, written by an ex-employee of FIFA’s former marketing partner, demanding that FIFA change its operations and reform by the end of this year or face new legislation on its tax breaks. The request comes at a time when Switzerland, along with other financial centres, has been attacked for its tax haven status, and by association, its historic bank secrecy laws.

“They’re a big company in the international entertainment business,” Roland Rino Buechel, the member of Parliament for the Swiss People’s Party who authored the proposal, was quoted as saying. “The legal status they have is a very advantageous one. It’s like a sixth-division football club, or a fisherman’s association: they have the same law and this gives them many advantages. It shouldn’t be like this anymore.”

The motion, which is the first step to revise a law, was accepted by the government in March and kick-started a review by officials. The sports ministry will publish a report by the end of this year and make recommendations.

FIFA moved to Zurich in 1932. Its president, Sepp Blatter, was backed last week for a fourth term by 92 percent of FIFA delegates in a vote overshadowed by the suspension of his opponent for alleged bribery.

 

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