Cristiano Ronaldo Reportedly Faces Tax Investigation over Sponsorship Earnings
Real Madrid forward Cristiano Ronaldo and Manchester United manager Jose Mourinho reportedly face an investigation into tax evasion and money laundering.
According to Der Spiegel (h/t Agence France-Presse, for Yahoo Sports), the two benefited from a system set up by superagent Jorge Mendes, one of the most famous representatives in football today.
El Confidencial and Football Leaks (h/t Marca) alleged Ronaldo has used Multisports & Image Management Ltd., based in the Republic of Ireland, to avoid paying more tax. He has reportedly also hidden money in Switzerland and the British Virgin Islands, with figures as high as €150 million mentioned.
As noted by Marca, “The Spanish tax authorities will investigate lost tax receipts when funds earned in the country are diverted through offshore accounts, even when billed through a corporation.”
It’s then stated Ronaldo could owe in the region of 43.5 per cent in tax on the earnings aforementioned.
It's reported the Treasury will pursue the case, which would rule out the prospect of criminal proceedings against Ronaldo, though he would still need to pay back any money owed and potentially a fine if found guilty.
Sport noted that if Ronaldo has not declared this partnership to the Spanish authorities in the past, the case could become a criminal one.
The Sport report said Ireland is the country with the lowest corporation tax in Europe, standing at around 12.5 per cent. Listed in the report are a number of sponsorship deals Ronaldo has in place, including links with Nike, KFC, Toyota, Konami and Unilever.
Ronaldo has previously seen questions raised about his tax payments in Portugal, Sport added.
However, according to the Marca report: "An official spokesperson from Ronaldo's camp has stated that the player has been aware of his tax obligations since beginning his career, is not currently and has never been in trouble with the Treasury, and manages his image rights according to current legislation."
The 31-year-old wouldn’t be the first footballer to encounter problems with his taxes. Barcelona star Lionel Messi was hit with a 21-month prison sentence for tax evasion in July but avoided any time behind bars; team-mate Javier Mascherano also picked up a one-year prison sentence in January after not paying tax in full, although he didn’t spend time in jail either.
The story broke days before what’s poised to be the biggest game of the season so far for Ronaldo and his Real Madrid team-mates, as they head to Barcelona for Saturday’s El Clasico showdown. Ronaldo has been in brilliant recent form, netting five times in his last two La Liga outings.
Per the European Investigative Collaborations (via Yahoo Sports), United manager Mourinho reportedly "concealed 12 million euros in a Swiss account owned by a British Virgin Islands company."
The latest reports are part of an operation called "Football Leaks," a collaboration between 12 European newspapers who have undertaken a major investigation into corruption in football. Per Yahoo Sports, more revelations are expected in the next few weeks.
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