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| French soccer clubs not exempt from François Hollande's super-tax | French soccer clubs not exempt from François Hollande's super-tax |
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| France's revamped 75% super-tax on salaries above €1m will apply to football clubs, government officials have said, rejecting suggestions they would be exempt. | France's revamped 75% super-tax on salaries above €1m will apply to football clubs, government officials have said, rejecting suggestions they would be exempt. |
| On Monday, Noel le Graet, president of the French Football Federation, said clubs employing players on million-euro salaries would be exempt from the tax because it would only apply to businesses with more than 5,000 workers. | On Monday, Noel le Graet, president of the French Football Federation, said clubs employing players on million-euro salaries would be exempt from the tax because it would only apply to businesses with more than 5,000 workers. |
| But an official at the office of the prime minister, Jean-Marc Ayrault, told reporters that was incorrect. "The new measure will affect all companies paying out salaries above €1m," he said, adding that no company would be exempt, regardless of size. | But an official at the office of the prime minister, Jean-Marc Ayrault, told reporters that was incorrect. "The new measure will affect all companies paying out salaries above €1m," he said, adding that no company would be exempt, regardless of size. |
| President François Hollande has caused outcry with his plans for the super-tax – promised in his May 2012 election campaign – with leading figures from sport, entertainment and finance arguing it would hurt their ability to recruit top talent from around the world. | President François Hollande has caused outcry with his plans for the super-tax – promised in his May 2012 election campaign – with leading figures from sport, entertainment and finance arguing it would hurt their ability to recruit top talent from around the world. |
| Details of how the super-tax would work in practice remain vague, but officials said companies would pay a total adding up to 75% in tax on the portion of individuals' wages exceeding €1m. | Details of how the super-tax would work in practice remain vague, but officials said companies would pay a total adding up to 75% in tax on the portion of individuals' wages exceeding €1m. |
| A second official at Ayrault's office confirmed that the tax would apply to football clubs as well as employers of performers such as actors and singers on company payrolls. It would apply to small and medium-sized firms as well as larger ones. | A second official at Ayrault's office confirmed that the tax would apply to football clubs as well as employers of performers such as actors and singers on company payrolls. It would apply to small and medium-sized firms as well as larger ones. |
| Business daily Les Echos, citing finance ministry sources, reported that the new tax could raise €500m a year, double what the original version was set to raise, although it should apply to just under 1,000 people as against 1,500 for the initial plan. | Business daily Les Echos, citing finance ministry sources, reported that the new tax could raise €500m a year, double what the original version was set to raise, although it should apply to just under 1,000 people as against 1,500 for the initial plan. |
| Hollande says the tax, which is to stay in place for two years as a temporary measure to help the country out of economic gloom, is fair as the wealthy should bear a bigger burden in the effort to bolster public finances. | Hollande says the tax, which is to stay in place for two years as a temporary measure to help the country out of economic gloom, is fair as the wealthy should bear a bigger burden in the effort to bolster public finances. |
| "I don't think it's good for French football. It's not good for French clubs and it's not good for the place of [France's)] Ligue 1 in the world," Nasser al-Khelaifi, the chairman of Paris St Germain, said on France Info radio. | "I don't think it's good for French football. It's not good for French clubs and it's not good for the place of [France's)] Ligue 1 in the world," Nasser al-Khelaifi, the chairman of Paris St Germain, said on France Info radio. |
| Olympique Marseille head Vincent Labrune added: "Even if a soccer club like Olympique Marseille has a bigger media profile than a CAC-40 [blue-chip)] company, we are still a medium-sized provincial business. We do not have the means to pay this tax," he told Reuters. | Olympique Marseille head Vincent Labrune added: "Even if a soccer club like Olympique Marseille has a bigger media profile than a CAC-40 [blue-chip)] company, we are still a medium-sized provincial business. We do not have the means to pay this tax," he told Reuters. |
| The Socialist government is battling to raise extra revenue and trim ministerial costs as it tries to bring the public deficit below a European Union ceiling of 3%, having admitted it will overshoot that target this year. | The Socialist government is battling to raise extra revenue and trim ministerial costs as it tries to bring the public deficit below a European Union ceiling of 3%, having admitted it will overshoot that target this year. |
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