The French Council of State has halted the tax benefits provided to international sports federations, disrupting Fifa’s plans to return to Paris. The Council rejected the government’s proposal on the grounds that it violates the principle of tax equality.

The proposal, led by Renaissance Deputy Mathieu Lefèvre, aimed to exempt international sports federations from corporate tax and various contributions related to the governance and promotion of sports activities. It also included an income tax exemption for federation employees residing in France for five years.

While the proposal did not explicitly mention Fifa, it was widely perceived to be the primary beneficiary. The Council criticized the proposal for solely relying on a federation’s recognition by the International Olympic Committee (IOC) for tax benefits, deeming it as not based on objective and rational criteria.

Consequently, the Council denounced the proposal for violating the principle of equality before public charges. This decision presents a significant obstacle to Fifa’s return to Paris, particularly since the organization was originally founded in the French capital in 1904 but later moved its headquarters to Zurich in 1932 and established its main headquarters there in 2007.