High-profile tax fraud cases could hurt Spanish soccer

Author: Agencies

MADRID: Now that the season is over, Lionel Messi is getting ready to go to court. Messi will appear in front of a judge this week to defend himself from accusations he failed to properly pay taxes for part of his earnings from Barcelona, becoming the latest high-profile player to have to deal with Spain’s tough tax system. Neymar, Javier Mascherano, Adriano and Xabi Alonso also had to deal with Spanish tax authorities recently. The cases have brought unwanted attention to Spanish soccer, and could start scaring some players away just as the Spanish league tries to find ways to become more competitive against the Premier League, whose clubs have the financial power to go after nearly every top player on the market. Neymar’s father last year said the constant harassment over his son’s taxes could lead to the player’s departure from Barcelona. Players have been keeping quiet and don’t speak publicly about tax cases in Spain, but many admit it’s uncomfortable to watch Messi and others face the tribunals because of off-the-field issues. The Spanish league also avoids the subject, saying it can’t interfere in legal matters involving players and tax authorities. Messi and his father, Jorge Horacio Messi, have been charged with three counts of tax fraud and could be sentenced to nearly two years in prison if found guilty of defrauding Spain’s tax office of 4.1 million euros ($4.5 million) from 2007-09. The case is centered on the alleged unlawful activities of Messi’s father, but authorities said the Barcelona player knew enough to also be named in the case. They deny any wrongdoing. Messi was also being investigated by Spanish tax authorities after his name was among those released in the probe of international offshore accounts, known as the Panama Papers, although he was not charged for those allegations. Messi’s trial starts Tuesday, and the Argentine player is expected to testify at the Barcelona court on Thursday. He is not obligated to appear in court every day. In nearly all cases involving soccer players, the alleged irregularities are related to the creation of fictitious corporate structures to avoid paying taxes on income from image rights. Some also include the use of tax havens.

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