You should be paying a tax right now for starting this thread.
FIDE and federation members should be taxed
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Um, you needed income to afford the entry fee, and tax was paid on that income.
If you pay an amount to enter tournaments, membership fees to your local federations, etc, you should pay a 10 percent taxes on it to your government. You are not contributing anything by sitting at the chessboard, the least you can do is pay taxes for it.