Monaco exempted from France super tax
Monaco have been given an exemption from a super tax on salaries exceeding €1million just hours after being told they would have to make the payment.
The National Assembly voted on Thursday that the wealthy principality club, backed by a Russian billionaire, would be required to pay the tax despite falling outside France’s tax regime.
But the French government had that amendment suppressed on Friday in the latest twist of the long-running saga.
The government was concerned that the amendment may be deemed unconstitutional and asked the assembly to suppress it, which it did by a vote of 12 to eight.
“We did not want to take a judicial or constitutional risk,” Budget minister Bernard Cazeneuve told reporters.
Thursday’s amendment, presented by deputy Annick Girardin and voted on overnight, stated that the tax would be collected by the French league on behalf of the State.
The 75 percent tax rate, a 2012 campaign pledge of president Francois Hollande, was initially imposed on individuals who earned over one million euros a year but after protests by top French executives and actors such as Gerard Depardieu, the government amended the law and made companies offering such salaries liable for the payment.
The tax is applicable to annual revenues above one million euros although there is a five percent cap of a company’s turnover.
Top clubs have complained it will add up to 20 million euros to their tax bill, although for clubs like Monaco and Qatari-backed Paris Saint-Germain, this is a drop in the ocean
PSG, who have spent more than 200 million euros on transfers since being taken over by Qatar Sports Investments in 2011, are expected to pay 20 million euros.