The tax authorities are unforgiving, as many MotoGP riders know, who have found themselves forced to justify residences outside their home states, resulting in requests for tax payments. The last, in chronological order, are the two Espargaro brothers: Aleix and Pol have lived in Andorra for some time, but the Spanish Revenue Agency literally knocked on their doors for clarification on a residence considered “fictitious”.
According to what the Spanish newspaper reports El Periodico, the issue has been going on since 2018, when the Revenue Agency went to the Jerez and Aragon Grands Prix to get in touch with the two riders, who have always denied speaking. Now, the Regional Economic Administrative Court of Catalonia (TEARC) has given the OK to continue the proceedings against Aleix, who strenuously defends his position.
In total, the eldest of the Espargaro brothers should pay 586,590 euros to Hacienda (the Spanish Revenue Agency) for being a tax resident in Spain and not in Andorra between 2014 and 2017, when the pilot declared having residence in the small state which is considered one of the tax havens. “Aleix and his family are happy in Andorra, they have created their life there. We respect the work of Haciendabut we do not agree with their conclusions”, explain the people closest to the pilot.
Photo by: Gold and Goose / Motorsport Images
Aleix Espargaro, Aprilia Racing Team
“The current dispute with the Revenue Agency is based on technical tax issues. We dissociate ourselves from the position adopted by the Revenue Agency, and this is why we are already resorting to responding”, Pol Espargaro’s lawyers explain to the Spanish newspaper. Both Aleix and his younger brothers continue to defend their thesis, maintaining that they have found their dimension in Andorra and do not feel the need to live in Spain.
Precisely in this regard, Aleix Espargaro had published a vlog several months ago on his YouTube channel in which he talked about his life in the principality, not hiding the tax benefits, but also the pleasure of living in a quiet and human-scale place: ” It is clear that debates are created, but more moral than legal, because I am not doing anything illegal. People think not, but taxes are also paid in Andorra, I pay them here because it’s the place I live. I will not return to Spain. My family is safe here, something I give a lot of value to, we don’t have this feeling of tranquility in Spain. This country is spectacular, you can walk calmly down the street without any fear.”
Photo by: Gold and Goose / Motorsport Images
Pol Espargaro, Tech3 GASGAS Factory Racing
However, this would conflict with what has been demonstrated by the Revenue Agency, which requires the payment of taxes when residing in Spain for more than 183 days (more than half a year). Hacienda in fact, consider that Aleix Espargaro was in his native country for 204 days in 2014, 206 in 2015, 189 days in 2016 and 219 in 2017. For this reason, the Revenue Agency visited the Spanish circuits in person during the 2018 season, without however ever meeting the interested parties who, indeed, accused the officials of “stalking”.
The two Espargaro brothers thus share the same tax history as many colleagues, including Dani Pedrosa and Jorge Lorenzo, the latter winning the case against the Spanish Revenue Agency.
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