Funny Stuff Legislation Tax Policy

$9 billion tax exempt entity…

I was going to complain about how sporting entities are tax exempt – at least some are tax exempt.

I was going to compare cinemas to the AFL and wonder why one pays tax and one does not on its profits?

I was going to wonder how having clauses in its governing document saying no “member” will get the profits and on winding up the funds will go to a similar organisation means that at AFL that made a profit of $16 million is not for profit…

But everything is larger in America.

The NFL has been valued at $9 billion and it is tax exempt. Its CEO gets paid $15 million…

Then I came across the strangest thing. Major League Baseball in the US voluntarily gave up its tax exemption. Was it was because they wanted to help the collapsing Government finances? Was it so they could make distributions to their members? Nup. In the US if you are a tax exempt entity you have to declare your executives wages and the baseball executives decided they did not want to disclose what they were paying…

That’s unbiased management.

By Ken Mansell

As a stay at home Dad most of the week this is my way of pretending I am still the tax counsel of ASX and SEC listed companies, working at big 4 firms, working at the Federal Treasury, on the Henry Review and at Parliament House for the previous government.

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