Spain: Football: Taxman targets Real and Barca over fraud
Author(s): UNK | Date: November 26, 2016 | Language: English
Source: http://www.channelnewsasia.com/ | URL: https://goo.gl/hGrszi | Type: Text
Giants Real Madrid and Barcelona are amongst five La Liga clubs from whom the Spanish taxman is looking to recover €52 million, online newspaper El Confidencial claimed on Friday (Nov 25).
Alongside Atletico Madrid, Sevilla and Valencia, the big two are accused of having avoided tax by paying player’s agents directly. A tax source told AFP that those payments were in reality, and indirectly, part of the players’ salaries.
But by paying the agents, the clubs reduced their own VAT obligations while likewise reducing the players’ income, and thus income tax – with the taxman losing out in both instances.
El Confidencial said Real owe €11 million (US$11.7 million) and Barca €12 million for deductions that should not have been applied, while the two have been fined €5 and €7 million respectively. Atletico must repay €4 million plus a €2-million fine.
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