A resolution of the Contentious-Administrative Chamber of the National Court has rejected the appeal of FC Barcelona against the imposition of payment by the Central Economic-Administrative Court, in such a way that the Barça team will be forced to face said sanction economic, although the club has announced that it will appeal.
This issue joins the numerous problems that have arisen around the institution and its president Joan Laporta in recent months, in a sporting situation that is not going through its best moment either.
What is FC Barcelona accused of?
The National Court has considered that there was simulation in the payments of the Barça club to the agents of the footballers, given that, since they provide their services to the footballers and not to the club, they are in the nature of income from work, and therefore, are subject to withholding of Personal Income Tax (IRPF). In this way, FC Barcelona was obliged to make said retention between the years 2012 and 2015, something it did not do and for which the amount of 23 million euros is required at this time. This states the resolution of the AN:
“From the facts verified by the Inspection, it appears that the payments made by the club have been in the name and on behalf of the athletes who are the actual recipients of the services provided by the agents, while it appears that the agents are providing a service commissioned by the club or representing the club, which is not accredited in any way and the reality reflected in the documents in the file is contrary to these circumstances, since the agents represent the players and act in their interest “The Inspection reaches the conclusion that the relationship established between Barcelona and the agents only serves to cover the payments made by the club to the players. This assessment is shared by the Chamber.”
What does the concept of “simulation” mean in this case?
In this case, the Court explains that the simulation occurs due to the fact of wanting to avoid the tax obligation, that is, to receive a more favorable tax treatment than what actually corresponds to the operation. In this way, it is understood that FC Barcelona was trying to avoid paying taxes regarding this circumstance “by trying to appear to be remunerating the agent for non-existent services from the club, when in reality part of the remuneration is being paid to the player for this form, for the services provided by the club, with the corresponding tax incidence, which affects IS, VAT and Personal Income Tax.
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What has been the reaction of FC Barcelona?
The Barça team has issued a statement stating that they will appeal the AN's decision to the Supreme Court, in which they state that:
“It is surprising that this section of the Administrative Litigation of the National Court has not taken into account the most recent jurisprudence of the Supreme Court in this regard, and from which other football clubs have been able to benefit in recent sentences for the same problem.”
The Catalan club has also expressed its surprise at the diversity of the Court's criteria in different cases that deal with identical topics.
FC Barcelona statement https://t.co/hnkGeVAiPi
— FC Barcelona (@FCBarcelona_es) February 9, 2024
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