AS Monaco Decides Against Paying Taxes as French Government Withdraws Amendment

Russian millionaire and AS Monaco owner Dmitri Rybolovlev has revealed the Ligue 1 team will not be paying their €5 Million ($6.8M) tax due this year as the amendment that was voted two days ago was withdrawn by the government. 

French minister for the Budget Bernard Cazeneuve stated that this (the amendment) “wasn’t the best way to include Monaco in the 75% tax scheme”, adding that “the Constitutional board would reject it, as it involves a firm that isn’t domiciled in French territory.”

Monaco’s privileges have already been the targets of criticism from the other Ligue 1 club’s presidents and chairmen, who denounced the disparity between their tax requirements and Dmitry Rybolovlev’s (pictured).

Due to the new legislation, aiming at taxing earnings of major companies, such as football clubs, up to 75% when exceeding a million, PSG will have to pay off €20 Million ($27.5M), Marseille and Lyon €5 Million ($6.8M) and Lille €4 Million ($5.5M).

François Hollande and Prime Minister Jean-Marc Ayrault, who have had to go twice to implement the tax, are still struggling with a very problematic puzzle. They suggested that the club moves the HQ into the French territory in order to have the principality club falling under the French Constitution. This possibility has been firmly rejected by the club’s officials and Prince Albert himself, turning everything into a matter of national sovereignty.

Unsolvable for now, the case provokes the fury of other French clubs, who do not see why one of the richest championship teams benefit from preferential treatment.

Dmitri Rybolovlev spent €164 Million ($225.9M) last summer, after winning the French second division (L2), in order to sign top players such as Colombian stars Radamel Falcao and James Rodriguez or Portuguese playmaker Joao Moutinho. Monaco are currently second in the league, two points behind Paris Saint-Germain.