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Tax Fraud Cases

Jordinho said:
Angel Di Maria has been given a one-year suspended sentence today and James Rodriguez is now under investigation. They are both connected to Jorge Mendes and his company GestiFute, as are Mourinho, Ronaldo and others who are also under investigation.

The problems seems to stem from the dodgy way they deal with payment for image rights:

https://www.irishtimes.com/business...at-the-heart-of-football-tax-probes-1.3105547
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Are they still doing that?

That's been known since Sol clambell was a footballer.
 
scaramanga said:
Are they still doing that?

That's been known since Sol clambell was a footballer.
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It's legal to use as long as you are not playing the system, seems these were not paying the tax due on the proportion earned in Spain and they are cracking down since recession.
 
r-u-s-x01 said:
It's legal to use as long as you are not playing the system, seems these were not paying the tax due on the proportion earned in Spain and they are cracking down since recession.
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I thought the issue was that they were paid such a large proportion of their salaries as image rights. At least, that was the problem in the UK, where virtually unheard of footballers were taking 90% of their salaries as image rights.
 
scaramanga said:
I thought the issue was that they were paid such a large proportion of their salaries as image rights. At least, that was the problem in the UK, where virtually unheard of footballers were taking 90% of their salaries as image rights.
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yes that was the "playing the system" bit, my understanding is its similar in Spain but rather than the percentage paid in image rights is incorrect they did not recognize the value of these that was Spain based and tax should be paid on it. I heard / read (cant remember where) that they are particularly hard on those that have their "company" offshore as they see this as an indication they gamed the system. In Ronaldo's case it was based in Ireland as he didn't change since Man U.
 
its the agents that handle all the paperwork, they should be the ones under the cosh, not the players.
 
Mr_B said:
its the agents that handle all the paperwork, they should be the ones under the cosh, not the players.
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No chance - you can make them jointly liable but passing the buck like this will just mean people will bring in a fall guy and continue to rip off everyone. The players didn't pay their tax, they took the risk on setting up the structures to save a bit of cash they may not know the details but they would know this much, its their responsibility to make sure its above board - get an outside source to look it over etc. or just pay the standard rate.
 
Would you trust the average football agent with your taxes?

I assume that the structures were set up by expert tax accountants and lawyers. But if you pay someone to aggressively reduce your taxes, you are making the choice to follow a procedure that pushes the limits of the law and may or may not be legal. No one but you is responsible for that choice. The players might have a case to sue the lawyers/accountants, but they are the ones not paying their taxes.
 
Former Chelsea and Real Madrid centre-back Ricardo Carvalho has been sentenced to seven months in prison, according to a report.

El MundoDeportes report the 37-year-old former Portugal international has been found guilty of two tax offences dating back to his time at the Bernabeu with Real between 2011 and 2012.

Carvalho was handed the punishment by a magistrates court in Madrid and is understood to relate to fraudulent image rights from his time in the Spanish capital.

The prosecution office had requested a 12-month prison sentence and a €300,000 fine, however the court felt that was “disproportionate” and instead sentenced Carvalho to seven months in prison along with a €142,822 fine.

Football Espana also claims the player, who now plays for Chinese Super League side Shanghai SIPG, was praised “for his full acknowledgement of the circumstances and compliance in proceedings”.

The court cited that Carvalho confessed before proceedings were brought against him and he returned the entire amount of the defrauded fee of €545,981.03.

http://www.teamtalk.com/news/former-chelsea-defender-handed-seven-year-prison-sentence
 
r-u-s-x said:
yes that was the "playing the system" bit, my understanding is its similar in Spain but rather than the percentage paid in image rights is incorrect they did not recognize the value of these that was Spain based and tax should be paid on it. I heard / read (cant remember where) that they are particularly hard on those that have their "company" offshore as they see this as an indication they gamed the system. In Ronaldo's case it was based in Ireland as he didn't change since Man U.
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I think the 'image rights' payments were typically paid into umbrella companies registered in tax havens. It was blatant tax evasion. I think Arsenal were into this in a big way several years ago with large portions of their player wages paid as image rights into such companies.
 
Finney Is Back said:
I think the 'image rights' payments were typically paid into umbrella companies registered in tax havens. It was blatant tax evasion. I think Arsenal were into this in a big way several years ago with large portions of their player wages paid as image rights into such companies.
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As were Portsmouth, Southampton and QPR apparently. Levy managed to keep us out of that dirty mess.
 
Aldo said:
And guess who is the common denominator between those three clubs.
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I've narrowed it down to three suspects:
redknapp-rosie_2118140b.jpg
 
r-u-s-x said:
If you let known wheeler dealer managers sort out the way people are payed you have a lot of problems.
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I'm not sure that Harry Redknapp is bright enough to come up with such an idea. He also (as far as I'm aware) never worked at Arsenal - who I think were one of the early adopters of this). As far as I recall their players were receiving over half of their salaries in image rights. Possibly just about believable for Thierry Henry if you really stretch the truth out, but not quite so believable for Giles Grimaldi who's name probably sold about 3 shirts in his entire lifetime - each of which he bought himself to give to his children (who just wore their Henry shirts anyway).
 
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