FIA News: F1 governing body threatens to leave France

(GMM) F1’s governing body, the Fédération Internationale de l’Automobile (FIA), has revealed it may move out of France over taxes.

The more than century-old FIA, as well as the similarly Paris-founded football sanctioning body FIFA, have told French publications that their major gripe is a “legal and tax system” and is “not adapted to their activities”.

“Although France is the cradle of motorsport, international competition, particularly in terms of labor costs, and the globalization of sport, are weakening this position,” confirmed FIA official Xavier Malenfer.

“Without clarification, through the recognition of a specific status for international sports federations, there is little hope of seeing the activities of the FIA develop further, despite all the incontestable merits of Paris,” he added.

It is reported that at the end of last year, French authorities indicated that favorable tax arrangements for international sporting bodies may no longer be possible.

Therefore, both the FIA and FIFA are now jointly demanding clarity “as to the legal, social and fiscal regime which would be applicable to them”.

“International sports federations are not asking for extraordinary privileges, or to be treated better than other types of organizations, but not less well either,” said FIFA’s Paris branch head Kenny Jean-Marie.