By David Owen
April 10 – FIFA’s recently-announced positive annual result of $89m for 2012 was achieved despite a striking 350% increase in the world governing body’s annual tax charge.
The consolidated income statement in the organisation’s 2012 financial report, published last month, puts taxes and duties at just over $17 million, against less than $4.9 million in 2011.
The body says that the increase is “related to the growth in reserves”.
These have more than doubled from $643 million in December 2007 to $1.38 billion at the end of last year.
FIFA says that having “sufficient” reserves is of “great importance” to its financial independence and ability to react to “unexpected events”.
This has proved “particularly vital in the light of the worldwide financial crisis”.
Not surprisingly, the Zurich-based organisation says the majority of taxes and duties are “paid to tax authorities in Switzerland”.
FIFA is taxed according to Swiss taxation rules for associations.
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