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F1's FIA considers leaving France over tax concerns

F1's FIA considers leaving France over tax concerns
© Reuters
The governing body of Formula 1 has indicated it might relocate its headquarters out of France.

The governing body of Formula 1 has indicated it might relocate its headquarters out of France.

Founded over a century ago, the FIA, along with the Paris-founded football authority FIFA, has expressed dissatisfaction with the French legal and tax system to local media, deeming it unsuitable for their ongoing operations.

"Although France is the cradle of motorsport, international competition, particularly in terms of labour costs, and the globalisation of sport, are weakening this position," acknowledged 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 further elaborated.

French authorities suggested at the end of last year that beneficial tax provisions for international sports organizations might be withdrawn.

Consequently, both FIA and FIFA are urgently seeking clarification on the legal, social, and fiscal frameworks that would apply to them.

"International sports federations are not asking for extraordinary privileges, or to be treated better than other types of organisations, but not less well either," asserted Kenny Jean-Marie, head of FIFA's Paris office.

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