Tax office continues player clampdown

The Spanish tax office is maintaining pressure on a number of players with at least seven from Barcelona and Real Madrid the centre of attention.

AS cites a report from El Pais that reveals tax inspections have increased in the past few months as the Hacienda looks to end the use of companies whose sole function is to exploit players’ image rights.

El Pais also claim payments to agents and representatives are also under the microscope as new interpretations of tax law make some payments illegal.

It was alleged in October by El Mundo that Sergio Ramos, Gerard Pique, Andres Iniesta, Iker Casillas and Xabi Alonso were under investigation.

El Pais now say Javier Mascherano can be added to the list and another unnamed Barca player is having his affairs looked into.

Further cases in the Madrid camp are believed to be on the books but the identities of those players aren’t known either.

It’s the payment of commission on transfers and other deals that the Hacienda is taking issue with as agents can often receive 10% from the clubs.

That’s a fee not included in payments made to the players and is charged at the 21% rate of VAT and not the 52% of income tax, which means the player saves money.

The tax office now considers the commission as part of the payment made to the player and the full amount should be taxed.

AS quotes a ‘senior official at the Hacienda’ who claims the situation has worsened lately because of ill-feeling between LFP President Javier Tebas and the director of the agency, Soledad Garcia.

Tebas was sued by Garcia after the former accused the latter of wanting to liquidate the clubs. The unnamed official describes the situation as ‘a war’ between the LFP and the Hacienda.

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La Liga - Club News