Tax Optimization at the Level of Sports Clubs

Abstract

The paper deals with the way in which sport clubs resort to tax optimization in order to avoid the fulfilment of their obligations towards the general budget, which is established by speculating, for their benefit, the content of the legal rules applicable in the matter, which allow the choice of a particular tax regime, advantageous to them. Tax optimization is an important point in effective asset management strategies. In tax law there is the principle that any company is free to organize its activity in order to optimize their tax and payments and, as a result, most companies try to find legal ways to pay lower taxes. However, it often happens that tax optimization is mistook for tax evasion and moralizing speeches appear in a field considered immoral from the start. However, tax optimization implies law enforcement and includes any immediate measure likely to reduce the tax costs associated with a specific operation/transaction. We can therefore conclude that tax optimization represents a thorough understanding of the business of the sports organization, its mechanisms and limitations, as well as finding those routes offered by both local and international tax laws that lead to the reduction of the amount and the postponement of the tax charge as much as possible, so that the company can reduce or better manage the impact of cash flow.