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Taxes and the Euro 2008

Reinhard Göweli writes that people who receive gifts of tickets to the 2008 UEFA European Football Championships may face unpleasant financial consequences: "Of the 1.13 million tickets available for Euro 2008 games in June, tens of thousands are given away as gifts to employees and business partners. Roughly 15,000 are distributed in the form of VIP tickets among especially important partners, customers, top employees and decision makers." The consequences of such gifts may be unpleasant, however. "Because of the exceedingly high ticket price - and the even higher price of VIP packages - there is tax liability for tickets. ... Normally you would have to fork over up to 8,000 euros for a VIP package for the Euro 2008 finals in Vienna at the end of June. As a result, the tax authorities can demand that you pay taxes on that amount. High earners will have to pay 50 percent - or 4,000 euros - in taxes for the pleasure of witnessing the Euro 2008 finals."

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