The Supreme Court gave Reason florentino perez and canceled four deals for around three million euros The Central Economic Administrative Court (TEAC) real Madrid to pay VAT to players’ managers on signatures. In the four sentences that EL PERIÓDICO DE ESPAÑA has access to, the Supreme Court amends the plan to the National Court, which has so far upheld all the decisions of the Treasury, which has so far imposed millions of dollars in sanctions, as well as the white team. for FC Barcelona, Atlético Madrid, Sevilla FC and Valencia CF, among other clubs. This decision brought the victory to the clubs. millionaire war for commissions they pay to brokers.
The leading teams of Real Madrid and La Liga paid sums to the managers of the players. Consequences of signatures, transfers, termination of contracts or extension or modification of contracts. Invoices issued by agents include VAT, so organizations have deducted the relevant tax. And it was the tax that the Economic Administrative Court wanted the clubs to pay along with the penalty because they felt these funds should be covered by the players.
On February 23, the Contested-Administrative Division’s Second Chamber issued four resolutions establishing case law and compelling the Treasury to cancel million-dollar liquidations and sanctions. the first one Real Madrid benefits It was for VAT corresponding to the period between April 2011 and June 2014. A tax liability of 383,921 euros and a penalty of 129,975 euros, i.e. a total of 396,897 euros.
mediation services
judges José Antonio Montero Fernández (president), Francisco José Navarro Sanchís, Dimitry Berberoff Ayuda, Esperanza Córdoba Castroverde and Rafael Toledano CanteroAs spokesperson, he agreed with Real Madrid, who argued that the player’s agent is an intermediary with whom he is contracted for mediation services, and therefore pays for the service regardless of whether the athlete can also take advantage of it. For Florentino Pérez, Tax Administration mixes mediation activitywhat the manager understands by providing the club and the club pays him/her and the player’s representation activity unrelated to the mediation in question and where the player pays him/herself.
The Supreme Court’s decision will also have a cascading effect in favor of the managers and players themselves, as the Treasury has increased their tax base if clubs charge a higher fee and include the amount of commission in their wages, thus increasing taxation on personal income tax. Moreover, These substantial VAT amounts could not be deducted from personal income taxes by athletes as they would be taxed as earned income.
Making a strong claim to the actions of the Treasury and the National Court’s Contested-Administrative Division, which sanctioned clubs, the judges argued that both institutions they acted with expansive force incompatible with the rest of the legislation.If these decisions are approved, the Administration will not need to “almost in any case” initiate the proceedings envisaged in the General Tax Code, since it will be sufficient to “qualify” the actual situations that it has determined in the Law to practice and “adjust” them to legality. ,As its qualified power will be practically absolute and encompassing any conceivable situation.“.
A touch of the National Court
In these sentences, the Supreme Court is giving a wake-up call to the National Court, because the case-law doctrine is not unknown to the Trial Chamber, but it does not apply it because it considers it unimportant for these cases.. Also in the decision, the judges point out that the sanction should be greater if clubs are accused of ‘simulating’: “Paradoxically, the sanctions contract considers that we are dealing with a minor violation, it does not appreciate the existence of concealment and that the offense is necessary, not an intentional act. considers that it was determined by a lack of due diligence; this is an discretion that seems difficult to reconcile with the operational scheme that constitutes the liquidation agreement,” states the decision.
The largest sentence means that about two million euros will be refunded to Real Madrid, as there is a VAT agreement corresponding to the period 04/2011 – 06/2014. A value of 1,370,100 euros is added to this with a penalty of 597,448 euros, representing a total of 1,967,549 euros..
The third resolution, which is the same as the previous resolutions, concerns several months of 2015 and total 200.100 Eurosthe fourth refers to payments for 2015 and the remainder of 2016. 391,790, ie 2,956,336 euros for four sentences The Treasury will have to return to Real Madrid. The white club has already benefited recently 3.5 million return for the IBI paid for his work in the sports city of Valdebebas (Madrid).
millionaire returns
Until the Supreme Court overturned the sanctions against Real Madrid on February 23, both the Administrative Economic Court and the National Court continue their decisions regarding the collection of VAT on payments made to intermediaries. The final sentence was given the day before, on February 22. Contested Administrative Division He confirmed the Treasury’s decision to liquidate Sevilla FC and fine them 1,141,770 euros.. In the same sense, the National Court upheld another agreement on September 6, 2022, with a fine of 2.3 million euros.
On October 28, two judgments of the Fourth Division of the Contested-Administrative Division of the National Court, Atlético Madrid pay 600,000 euros. However, the rojiblanco club benefited from the prescription of other Treasury inspections due to agents’ VAT, which the team led by Enrique Cerezo was spared from paying 639,706 euros.
Valencia CF did not escape from the Treasury either For payments to intermediaries, the magistrates have approved two resolutions since 23 March 2022, dated 24 June 2020 and 25 January 2021. Forced Valencia team to liquidate and pay a fine of 2,234,905 euros.
All these amounts deducted from the clubs now need to be refunded. It will be reflected in the payments made by the players and intermediaries to the treasury..