Final answer:
A not-for-profit sporting club may be exempt from paying income tax, depending on certain qualifications and conditions.
Step-by-step explanation:
A not-for-profit sporting club may be exempt from paying income tax, depending on certain conditions and qualifications. In many countries, including the United States, not-for-profit organizations, such as sporting clubs, can qualify for tax exemption under specific provisions of the tax code, such as Section 501(c)(3) in the U.S. However, it is important to note that not all sporting clubs automatically qualify for tax exemption simply by being not-for-profit. They must meet certain requirements, such as being organized and operated exclusively for tax-exempt purposes, and not distributing profits to individuals.For example, if a not-for-profit sporting club is organized to promote amateur sports by providing opportunities and facilities for athletes without making profits for private individuals, it may be eligible for tax exemption. This means that the club does not have to pay income tax on its revenue, as long as it meets the criteria set forth by the tax authority.It is always advisable to consult with a tax professional or attorney familiar with the specific tax laws in your country to determine if a particular not-for-profit sporting club is exempt from paying income tax.