Xavi will go to the Supreme Court for a millionaire dispute with the Treasury

Xavi Hernandez is not satisfied with the partial victory against Hacienda who recently decreed the National audienceand, as El Periódico de España, from the Prensa Ibérica group, has learned from sources close to the Catalan, the coach has decided to raise his case to the Supreme Court. He does it to defend the way in which he paid his image rights when he was still a player for the culé team and, in this way, try to completely cancel the 2.5 million euros that the treasury demands from him.

The magistrates of the Fourth Section of the Contentious-Administrative Chamber decreed their victory at the beginning of October, although only partially, in a ruling to which this newspaper has had access for the first time.

It details how The technician transferred his taxation through a company in his name, reducing, as the treasury defends, the tax base and therefore reducing the taxes that had to be paid on that income. A “simulation”, explains the ruling, whose sole purpose was to obtain a tax benefit.

However, as has already happened on other occasions – Dani Alves, for example, has escaped from prison from paying several million euros for a similar issue -, the justice system is recognizing in its latest decisions errors by the inspection about how image rights should have been taxed, and, therefore, canceling settlements that it considers were incorrect.

In the case of Xavi Hernández, the Treasury demanded 2.5 million euros for the Corporation tax of the years 2013 and 2014, of which only a part has been cancelled. “We do not want to talk about amounts so as not to hinder an appeal process that is still open,” sources close to the coach maintain before this newspaper, from where they convey optimism with the process.

Despite that victory, Xavi claimed several more things in which the National Court has not agreed with him, Because his magistrates consider that, for example, he was not right when discussing how taxes should be withheld for what Barça paid him.

Nor do they agree with him that, in the opinion of the Treasury and the National Court, the fact that it was Barcelona that paid Xavi’s representation agency to carry out work that benefited the footballer himself was a “simulation.” “whose sole purpose “was the tax benefit” of the then recent champion of Euro 2012 and the club itself.

“The parties achieve their objective, which is that [Xavi] declare less amount of work income and the club can deduct input VAT that would otherwise be lost,” explains the ruling, which points out that it is an “artificial mechanism that necessarily requires intentionality and knowledge.”

Invoicing of payments

The two years investigated are, practically, the last two that Xavi spent at the Barcelona Football Club, since in May 2015 he announced his departure from the club of his life to go play for Qatar. There he permanently retired from the playing fields in 2019 and that was also where he began his career as a coach before returning to the Camp Nou.

The sentence, which is dated at the beginning of October, includes how the then player used Galileo 136, SLa company owned practically 100% by him, to “manage the image rights exclusively, as well as the income derived from it, throughout the national territory.”

By understanding the inspectors of Hacienda that this formula was being used to reduce the tax base, and, therefore, to pay less taxes, settlement agreements were issued for those 2.5 million euros in total. Given this, Xavi filed an appeal against the Central Administrative Economic Court (TEAC), which did not agree with him in 2019, and then in the ordinary justice system, which has just partially agreed with him.

Mix the origin of money

The proposed settlement of the 2.5 million euros that the National Court has now annulled with its decision referred to the valuation at market price of the operations linked to the business triangle formed by Galileu 136, Barcelona and Xavi himself. .

He has done it, as previously happened with his former teammates Iniesta y Puyolbecause the judges of the National Court have considered that Xavi is right in arguing that the Tax Agency made a mistake when classifying the payments made by the club, since they did not exceed the legally permitted limits.

An argument for which justice has already agreed with him in the past when he also had to appeal to the courts for almost one million euros that the Treasury claimed for the same reason, although in that case it was for the years 2009 to 2012.

2023-12-15 09:35:49
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