Cristiano Ronaldo faces tax probe into overseas image rights
According to Spanish daily El Confidencial, the authorities are preparing a claim against the Real Madrid star before the case expires on June 30Valencia vs Real Madrid live online: LaLiga
According to Spanish financial media outlet El Confidencial, the tax authorities are putting the final touches on their claim against Real Madrid forward Cristiano Ronaldo over alleged irregularities in his returns between 2009 and 2011. The tax agency claims that Ronaldo failed to pay the full amount on earnings of 150 million euros from his image rights during that period and representatives for the Portugal captain had diverted the money to the British Virgin Islands through a complex network of companies in several countries.
Ronaldo advisers released tax returns
Ronaldo has denied any wrongdoing and the agency that represents him, Gestifute, released his tax records after the accusations first emerged, which showed the Real Madrid star held offshore earnings of 203 million euros in 2015.
However, the tax authorities are now working on an audit on the basis that Ronaldo paid 5.6 million euros on his overseas income from image rights between 2009 and 2015, or four percent of his overall earnings. As the original investigation dates from 2011, the tax agency has until June 30 to file their complaint before the statute of limitations expires.
"Beckham Act"
Speaking to El Confidencial, a Gestifute spokesperson said: “In accordance with the “Beckham Act,” which [Ronaldo] was subject to at the time in question, he was only obliged to pay tax on image rights earnings generated in Spain and not on those from abroad.” However, the spokesperson noted that the tax agency “maintains different criteria” and that at no time was there any intention on the part of Ronaldo or his advisers to commit a fraudulent act.
The initial allegation against Ronaldo was published by Der Spiegel and Spanish daily El Mundo based on information provided by Football Leaks, which also levelled the same accusations against José Mourinho. Ronaldo’s advisers released a document issued by the tax agency at the time that stated: “According to the data stored at the tax agency, the solicitant is at this time up to date with all tax obligations.”
It was also reported that Ronaldo had previously paid large sums to the authorities to regularize his tax situation in Spain and that he had provided the tax authorities with all the documentation requested.
