Spanish taxman targets Real Madrid and Barcelona over fraud

Updated: Nov 26, 2016, 14:57 IST | AFP |

Giants Real Madrid and Barcelona are amongst five La Liga clubs from whom the Spanish taxman is looking to recover 52 million euros, online newspaper El Confidencial claimed yesterday

Madrid: Giants Real Madrid and Barcelona are amongst five La Liga clubs from whom the Spanish taxman is looking to recover 52 million euros, online newspaper El Confidencial claimed yesterday.

Alongside Atletico Madrid, Sevilla and Valencia, the big two are accused of having avoided tax by paying player's agents directly. A tax source told that those payments were in reality, and indirectly, part of the players' salaries.

But by paying the agents, the clubs reduced their own VAT obligations while likewise reducing the players' income, and thus income tax — with the taxman losing out in both instances.

El Confidencial said Real owe 11 million euros ($11.7 million) and Barca 12 million euros for deductions that should not have been applied, while the two have been fined five and seven million euros respectively.

Atletico must repay four million euros plus a two million euro fine. El Confidencial said the monies owed could be claimed from either the clubs or the players.

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