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Education and Sport in the Prosperous
Epoch of the Powerful State
Marco Greggi
Ashgabat, November 13th 2015
Where’s Ferrara ?
2
Ferrara
What’s in Ferrara ?
3
Sport, Education and Taxes ?
Why Together ?
• The importance of Education in the Making of a Modern and
Powerful State;
• Subsidizing Education and Sport:
• Comparisons of models;
• The Italian experience;
• Sport and Education management;
• Quality assessment by the State;
• Concluding remarks.
4
Understanding the importance of
Education
• Education is one of the Fundamental rights in many European
Constitutions;
• Italy is included in this respect;
• Considered a Human Right;
• Sport is treated in a similar way, although equivalence is not always
made clear;
• Italy considers education as a priority, and sport as well;
• This entails the necessity by Governments to implement appropriate
legislation to grant acceptable education.
5
Implementing Education (and Sport)
• Italy: a mixed system:
• State controls the appropriate exercise of sport activity via CONI
(member of the CIO);
• Legal entity under the control of the state and regulating official
events and supervising confederations;
• Soccer;
• Basket;
• …
• Full private activity in sport is still possible but on a limited scale and
mainly for amateurs.
6
Continued: The Role …
• Education at all levels is under the supervision of the State;
• State may enter into agreements with private school / Universities
matching specific qualitative requisites;
• Continuous control by the State;
• State directly subsidizes private schools when conditions are met;
• Subsidies come from taxes collected by the State;
• The people takes care of private education;
• Influent role of religious institutions.
7
Where do the money come from ?
• In my Country … from general taxes:
• Income taxation;
• Taxation on consumption;
• Everybody pay for education;
• Fees for education are low:
• One-year first-class study in the faculty of Engineering:
• € 1400 - 1600 (depends on University regulation)
• One-year first-class study in the faculty of Law (Ferrara)
• € 1200 (scholarships available as well).
• Ongoing discussion on increasing fees and reducing taxes.
8
Subsidizing Education and Sport
• Tax deduction system from income taxation;
• System applied all around the world, but in Italy it has been
emphasised in order to facilitate subsidy to confessional schools and
Universities;
• The more you give, the less you pay (taxes);
• Advantages:
• Selective donations (to those who deserve);
• Disadvantages:
• Risks of abuses and improper allocation of money.
9
Extending the participation of the
private
• Foundations included in research and education;
• Donations are tax deductible for them as well;
• In case of sport: similar system only for not-for profit entities;
• Charities;
• Activity of the local authorities as well;
• Widespread application of the tax regulation to promote education
and sport beyond the direct intervention by the State;
• Diversification of the sources of funding;
• The State intervenes to compensate occasional or structural imbalances.
10
The Necessary control of the State
• The status of education entity such as sport entity eligible to
receive donations is controlled by the State;
• Very sophisticated ways to assess the nature of the entity of
the case;
• Intensive control by Tax Police to prevent frauds or abuses;
• Fraudulent use of sponsorships;
• Sham contracts;
• Fake invoicing;
• …
11
Most recent developments
• Advanced way to allocate resources obtained via income
taxation;
• The so called “0,5% approach”:
• 0,5% of the taxes to be paid may be allocated by the taxpayer
directly to some qualified entities:
• Schools,
• Universities,
• Research centres,
• Sport associations,
• Others …
12
Interesting Points for Turkmenistan
• Involving foreign investors in the education system;
• Firm control by the State on the project;
• Possibility by the students to have access to businesses and learn
foreign best practices here;
• In house Academias (such as the ENI’s one);
• Compensate the company via tax allowances;
• Necessity to negotiate them by the Central authority;
• Win-Win solution.
13
Thank you for your attention
marco.greggi@unife.it
14

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Education and Sport in the Prosperous Epoch of the Powerful State

  • 1. Education and Sport in the Prosperous Epoch of the Powerful State Marco Greggi Ashgabat, November 13th 2015
  • 4. Sport, Education and Taxes ? Why Together ? • The importance of Education in the Making of a Modern and Powerful State; • Subsidizing Education and Sport: • Comparisons of models; • The Italian experience; • Sport and Education management; • Quality assessment by the State; • Concluding remarks. 4
  • 5. Understanding the importance of Education • Education is one of the Fundamental rights in many European Constitutions; • Italy is included in this respect; • Considered a Human Right; • Sport is treated in a similar way, although equivalence is not always made clear; • Italy considers education as a priority, and sport as well; • This entails the necessity by Governments to implement appropriate legislation to grant acceptable education. 5
  • 6. Implementing Education (and Sport) • Italy: a mixed system: • State controls the appropriate exercise of sport activity via CONI (member of the CIO); • Legal entity under the control of the state and regulating official events and supervising confederations; • Soccer; • Basket; • … • Full private activity in sport is still possible but on a limited scale and mainly for amateurs. 6
  • 7. Continued: The Role … • Education at all levels is under the supervision of the State; • State may enter into agreements with private school / Universities matching specific qualitative requisites; • Continuous control by the State; • State directly subsidizes private schools when conditions are met; • Subsidies come from taxes collected by the State; • The people takes care of private education; • Influent role of religious institutions. 7
  • 8. Where do the money come from ? • In my Country … from general taxes: • Income taxation; • Taxation on consumption; • Everybody pay for education; • Fees for education are low: • One-year first-class study in the faculty of Engineering: • € 1400 - 1600 (depends on University regulation) • One-year first-class study in the faculty of Law (Ferrara) • € 1200 (scholarships available as well). • Ongoing discussion on increasing fees and reducing taxes. 8
  • 9. Subsidizing Education and Sport • Tax deduction system from income taxation; • System applied all around the world, but in Italy it has been emphasised in order to facilitate subsidy to confessional schools and Universities; • The more you give, the less you pay (taxes); • Advantages: • Selective donations (to those who deserve); • Disadvantages: • Risks of abuses and improper allocation of money. 9
  • 10. Extending the participation of the private • Foundations included in research and education; • Donations are tax deductible for them as well; • In case of sport: similar system only for not-for profit entities; • Charities; • Activity of the local authorities as well; • Widespread application of the tax regulation to promote education and sport beyond the direct intervention by the State; • Diversification of the sources of funding; • The State intervenes to compensate occasional or structural imbalances. 10
  • 11. The Necessary control of the State • The status of education entity such as sport entity eligible to receive donations is controlled by the State; • Very sophisticated ways to assess the nature of the entity of the case; • Intensive control by Tax Police to prevent frauds or abuses; • Fraudulent use of sponsorships; • Sham contracts; • Fake invoicing; • … 11
  • 12. Most recent developments • Advanced way to allocate resources obtained via income taxation; • The so called “0,5% approach”: • 0,5% of the taxes to be paid may be allocated by the taxpayer directly to some qualified entities: • Schools, • Universities, • Research centres, • Sport associations, • Others … 12
  • 13. Interesting Points for Turkmenistan • Involving foreign investors in the education system; • Firm control by the State on the project; • Possibility by the students to have access to businesses and learn foreign best practices here; • In house Academias (such as the ENI’s one); • Compensate the company via tax allowances; • Necessity to negotiate them by the Central authority; • Win-Win solution. 13
  • 14. Thank you for your attention marco.greggi@unife.it 14