Football

Modric charged with 1.2 Million Euros tax fraud

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The Tax Agency has imposed a new penalty on Real Madrid midfielder Luka Modric. Finance estimates that the Croatian international defrauded 1,262,832.22 euros during the year in which he signed for Real Madrid. The Treasury considers that the runner-up of the world had to pay his income in full during the year of 2012 in Spain and that, on the other hand, he did it for the most part in England, where he played until that same year, in Tottenham Hotspur.
According to assure EL MUNDO sources of the investigation, the Treasury has demanded this amount by administrative means since it does not notice that, despite the amount, its conduct is constitutive of a tax offense. This amount, confirm the same sources, has already been disbursed by the footballer, who has filed an appeal for not being satisfied with the administrative resolution. In this line, the player discusses that he must have the status of a tax resident in our country in 2012 when he only lived in Spain for four months (since August 31 he signed his contract with Real Madrid until December 31).

In parallel, the Treasury has complained to Modric for two fiscal offenses for the years 2013 and 2014. In total, adding the amounts claimed by administrative and criminal, the Croatian player has already faced the payment of 2,140,347, 45 euros.Ivano, SARLA As it has done with other stars in the world of football, the Prosecutor for Economic Crimes filed a complaint against Modric accusing him of simulating the transfer of his image rights through an instrumental company based in Luxembourg, called the fraud attributed rises to 870,728 euros: 290,990 euros for 2013 and 579,738 euros to 2014. The case of Modric, like that of his partner in Madrid Marcelo Vieira, is being investigated by the Court of Instruction number 4 of Alcobendas The Public Prosecutor’s Office maintains that despite the “correct” formal appearance of the assignment that Modric made of its image rights to the Ivano entity, it was “simulated” and was carried out “for the sole purpose of channeling through said entity income for image rights of the player, avoiding the taxation in Spain of the income obtained in such concept ». Thanks to this “simulation”, the Treasury emphasizes that the soccer player managed to make the taxation for the rights of image “null” and that with it he achieved an “illicit saving” in his declarations of IRPF.
Through this corporate structure, Modric channeled, for example, its sponsorship contract with Nike. But also the Real Madrid payments corresponding to their image rights, which had been transferred by contract at a percentage of 50%. According to the Public Prosecutor’s Office, the Ivano society “totally lacked the material and human resources to manage the image rights of the player” and, therefore, it is a purely instrumental society. Also, the National Anti-Fraud Office ( ONIF) of the Tax Agency warned the Prosecutor’s Office of the possible existence of hidden financial positions by Modric in the Isle of Man. For this reason, a rogatory commission was requested to determine «possible current accounts, deposits or any other financial product »On behalf of the player in the Barclays Bank PLC entity.
At this time, Modric is negotiating with the Prosecutor’s Office to reach a compliance agreement similar to that signed by other footballers to close the judicial process for crimes against the Public Treasury that are maintained against him. To this end, the player has hired former magistrate José Antonio Choclán as lawyer, who has just closed, on behalf of Cristiano Ronaldo and José Mourinho, two of the largest compliance agreements signed in recent years in Spain. The new player of Juventus has had to pay 18.8 million euros and the Manchester United coach, more than five million.

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