Friday 21 February 2014

Spanish High Court looks to charge Barcelona with tax evasion from Neymar transfer



The Spanish High Court has announced that they are looking to charge Barcelona with tax evasion relating to the transfer of Neymar from Santos this past summer, with the Public Prosecutor contesting that Barcelona owe €9,100,800 from recorded payments of €10 million in 2011 and €27,920,000 in 2013.

The Prosecutor argues that Barcelona issued false invoices, which in turn, didn’t actually represent the actual transfer fee that was paid and therefore defrauded the government out of the actual tax amount.
Things get complicated even further after High Court judge José Perals argues that Barcelona were required to pay 24.7%, the tax rate for non-Spanish residents (following the abolition of the Beckham tax law) of the €37.1 million transfer fee.
Judge Perals has also added the player’s working contract, the amount required to acquire the rights from Santos, royalties and incentives from the up to nine contracts drawn up in the transactions.
Neymar’s father is also required to provide all documentation relating to the amounts paid to the ‘N&N Company’ which was revealed to have made €40 million in the transfer and the corresponding tax declarations from the beginning of the operation in 2011 until now.
Following the announcements, Barcelona went on the defense and contested that the transfer was legitimate and they have met all tax requirements related to the transaction.

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