Bartomeu faces tax fraud probe in relation to Neymar case

The Public Prosecutor’s Office attached to the Spanish High Court has asked Judge Pablo Ruz to charge current Barcelona FC president, Josep María Bartomeu, as well as the club itself, with tax fraud amounting to 2.8 millions euros supposedly committed in 2014, in relation to the signing of Brazilian footballer Neymar.

The Prosecutors Office explained the situation in a statement released today, in which they also asked for former Barcelona president Sandro Rosell and the club to face trial for irregularities in the acquisition of the player. According to prosecutors the player cost a total of 94.8 million euros (82.7 million in transfer fees and 12.1 million in taxes), far above Rosell’s claimed 57.1 million price tag.

Prosecutor José Perals has asked Judge Ruz to close the current investigation, in order for Rosell to face trial for offences under corporate law, and for both the former president and the club to face charges of tax fraud, supposedly committed in 2011 and 2013.

Perals has also asked for a separate investigation to be launched into the affairs of Bartomeu, for a tax fraud in relation to personal income tax totalling 2,845,700 euros, supposedly committed in 2014.

Spanish prosecutors argue that the club avoided making payments of 2.4 million euros of tax in 2011 and 6.9 million euros in 2013, while the player was still living in Brazil. They go on to claim that Rosell hid the true figures of the signing and that these weren’t included in the club’s accounts. Rosell’s actions therefore, according to the Prosecutor, were prejudicial to the club and amounted to corporate fraud.

In their statement Prosecutors claim that Rosell divided the signing fee into various amounts, each paid under a different concept, but which were all in reality for the player's signing. In total four contracts were signed with Santos and seven with the footballer, with his father acting as his representative, and with companies connected to the family.

According to the prosecution case, Rosell reached an agreement in 2011 with a company owned by Neymar’s father, which would hold the rights over the footballer as of 2014, to buy the player in 2014. They also signed another ‘loan’ agreement which was in effect a 10 million euro advance on the player’s salary. 2.4 millions euros should have been paid to the tax authorities for this payment. In 2013, and given the possibility that Neymar might not accept the existing agreement Rosell reached an agreement with Santos to pay 17.1 million euros for their rights to the player.

However, per the prosecution statement, another three contracts were signed between Barça and Santos: 7.9 million euros for a grass-roots collaboration, 4.5 million for a friendly that is still to be played as well as the participation of Santos in the Gamper Trophy, and finally in a letter of 31 May 2013, Rosell and Bartomeu agreed to pay another two million euros if Neymar was in the top three players in the Ballon d’Or.

In addition to these contracts another seven were signed with Neymar and his father’s companies, which superseded the 2011 contracts: 8.5 million euro contract for work, 1.5 million in image rights, 649,985 in agency and representation fees (Neymar’s father was due 5% of all the contracts); two million for scouting (400, 000 a year for five years) and four million for other agency work (advertising contracts with Brazilian companies, with two payments being made in 2013: 602,000 euros and 198,000).

The investigation into Rosell and Barça could be resolved by the two parties accepting the Prosecution case and agreeing to the penalties sought, thus avoiding a trial. Barcelona have already made an additional payment to the tax authorities in respect of the Neymar transfer of 13,550,830.56 euros, to avoid the existence of any “possible debt”, but it seems that prosecutors are still unhappy about the situation.

from Últimas noticias | Diario AS http://ift.tt/1zxyOM2

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