By Mustafa Sharif

(C) FIFA

(C) FIFA

FIFA is recognized as a charitable organization in Switzerland. It does not have to pay taxes when it does business. Profits come whole. Since 1927 it has been based in Zurich, known as a “tax haven” for large organizations. A place where it’s accepted to be “above the law”.

FIFA has to pay equity taxes on the money it keeps in Zurich. This is at a rate of 1.75% for the 2.1 billion dollars of equity, accumulating to 1.2 million dollars. Pretty much pocket change for an organization the size of FIFA, an organization that earns 3.4 billion dollars of revenue.

Elsewhere where FIFA operates, such as in host countries for its tournaments, FIFA has taken a big hit from the media regarding the prerequisites it sets for the nation, requiring no taxation on its profits. These profits come in a multitude of ways, such as:

– Television broadcasts (television stations and commercials)

– Ticket sales

– Local sponsorships (media, etc.)

But there is an imbalance between FIFA’s revenues and the host nation’s revenues. At the 2010 World Cup in South Africa, it’s been widely <a target=_self title="Reuters – 2010 South Africa …continua sul blog

…continua sul blog: Football Talk