Sports Law France : Incomes of athletes taxable in France

Publié le Modifié le 17/05/2021 Vu 2 509 fois 0
Légavox

9 rue Léopold Sédar Senghor

14460 Colombelles

02.61.53.08.01

In 2011, the French Administrative Supreme Court judged that a German professional athlete participating in a tournament held in France was linked to the alleged organizer with a labor contract. Therefore, earnings are taxable in France under the category of wages and salaries.

In 2011, the French Administrative Supreme Court judged that a German professional athlete participating in a

Sports Law France : Incomes of athletes taxable in France

A German professional athlete participating in a tournament held in France is linked to the alleged organizer with a labor contract. Earnings are taxable in France under the category of wages and salaries.

A German tennis player was the subject of a tax adjustment by the franch tax administration for revenues collected on the occasion of his participation in several French tournaments had been taxed in France.

Initially, the Administrative Court of Nice had rejected his request for discharge of taxes and penalties.

The Administrative Court of Appeal in Marseille has also rejected the request of the athlete and allowed the application for substitution of legal basis made by the tax authorities to tax the gains of the players in the category of wages and salaries.

In its decision of 22 June 2011, the "Conseil d'Etat" (Administrative Supreme Court) rejected the appeal brought in by the tennis player.

 

I) Amounts paid directly to the athlete

The "Conseil d'Etat", in that case, based its decision on the provisions of former Article L.762-1 of the Labour Code (now L.7121-3).

This text states that "Every contract by which a person or entity to ensure, for remuneration, the assistance of an entertainer for its production, is presumed to be a contract of employment", except that the activity in question requires registration of the artist in the Register of Commerce and Companies.

For the "Conseil d'Etat", "these provisions, given the generality of their terms, which do not define exhaustively performing artists and do not impose any particular cultural aspect to the activity of these are applicable to players engaged in professional tennis tournaments such as those that the French Tennis Federation organizes. "

In addition, "nothing in the tax code does not preclude the gains earned by those players are classified for the assessment of income tax in the category of wages and salaries".

 

II) Payments to a third party

The gains for the tournament of Roland Garros and Paris-Bercy had been paid to an intermediary (Dutch company), and not directly to the athlete.

For the "Conseil d'Etat", the presumption of employment contract of Article L.762-1 of the Labour Code is independent of the existence of a labour contract between the organizer and the performing artist, and exists even if that compensation is not paid directly to him.

In this case, the Dutch company has acted as an agent of the player, but it was clear that the payments were for the athlete. Indeed, the "Conseil d'Etat" believes that "where a taxpayer has entrusted to a third party to collect revenue from professional fees paid to the third party are deemed to be immediately available to the taxpayer, regardless of the date and terms of their actual payment."

 

III) What are the consequences?

  • All athletes participating in sporting events in France have to be considered related to the organizer by a contract ( with all the tax and social consequences)?
  • Will Civil Courts confirm this ?

 

 

Maître Christophe BERTRAND and Thierry BARDAUD

Cabinet Bertrand & Associé

Avocats en droit du sport à Paris

 

(pour plus d'informations sur le Cabinet BERTRAND ou ses avocats en droit du sport)

Vous avez une question ?

Posez gratuitement toutes vos questions sur notre forum juridique. Nos bénévoles vous répondent directement en ligne.

Publier un commentaire
Votre commentaire :
Inscription express :

Le présent formulaire d’inscription vous permet de vous inscrire sur le site. La base légale de ce traitement est l’exécution d’une relation contractuelle (article 6.1.b du RGPD). Les destinataires des données sont le responsable de traitement, le service client et le service technique en charge de l’administration du service, le sous-traitant Scalingo gérant le serveur web, ainsi que toute personne légalement autorisée. Le formulaire d’inscription est hébergé sur un serveur hébergé par Scalingo, basé en France et offrant des clauses de protection conformes au RGPD. Les données collectées sont conservées jusqu’à ce que l’Internaute en sollicite la suppression, étant entendu que vous pouvez demander la suppression de vos données et retirer votre consentement à tout moment. Vous disposez également d’un droit d’accès, de rectification ou de limitation du traitement relatif à vos données à caractère personnel, ainsi que d’un droit à la portabilité de vos données. Vous pouvez exercer ces droits auprès du délégué à la protection des données de LÉGAVOX qui exerce au siège social de LÉGAVOX et est joignable à l’adresse mail suivante : donneespersonnelles@legavox.fr. Le responsable de traitement est la société LÉGAVOX, sis 9 rue Léopold Sédar Senghor, joignable à l’adresse mail : responsabledetraitement@legavox.fr. Vous avez également le droit d’introduire une réclamation auprès d’une autorité de contrôle.