The Supreme Court has admitted a cassation appeal from the Seville against a ruling of the National Court about payments to the club to the players’ agents. The Sevilla club considers that the services provided by the representatives in the renewal, extension, transfer of rights or termination of contracts They should not be classified as income from the work of footballers. The idea that Sevilla FC is pursuing is that the Treasury Recognize that an agent works for both parties (club and footballer), so the commission should be deducted equally between both. A situation that is already contemplated in other countries such as, for example, the United Kingdom.
As reported by Europa Press, the Supreme Court addresses a cassation appeal by Sevilla FC, against a ruling by the Fourth Section of the Administrative Litigation Chamber of the National Court, rejecting its initial appeal against the withholdings imposed on personal income between 2011 and 2015.
The ruling of the National Court, according to the Supreme Court, “considers that the payments made by the club to the agents or representatives of soccer players, by virtue of contracts signed with them, in relation to the hiring of players, as well as the renewal, extension, transfer of rights and termination of such contracts, etc.; correspond to services provided by such agents or representatives to the footballers and not to the clubso they must be classified as income from the work of footballers.
The arguments of Sevilla FC
However, the Sevilla FC sees violations in this matter, as it has stated in its appeal. The club warns of alleged violations of the General Tax Lawof the Personal Income Tax Law (IRPF) and partial modification of the laws on Corporate Taxes, on Non-Resident Income and on Wealth; and even the Spanish Constitution itself.
In this way, the Supreme Court addresses this appeal, stating that to elucidate its object it is necessary to “determine whether the Administration can exercise the power of qualification granted to it by article 13 of the General Tax Law in this case, where it attributes the consideration of payments made for the services provided by the agents or representatives to the footballers to the amounts paid by a football club to said agents or representatives as services for the recruitment of players.
«The classification of taxable events is an operation consisting of determine whether the fact, act, or business of reality fits into the normative hypothesis that has configured the lawtaking into account its legal nature and regardless of the form and name that the interested parties have given it. Therefore, it is an operation of subsumption of the fact of reality in the major premise of the norm, on strictly legal bases. However, what was carried out by the Administration is an operation that completely disregards the legal business in which the parties – the football club and agent – claim to have carried out their respective services, in particular the payment for the provision of services«explains the Supreme Court.
Given the case, the Supreme Court agrees to accept the Supreme Court’s cassation appeal for processing, by “presenting objective cassation interest for the formation of jurisprudence”, thus initiating the pertinent actions to resolve the appeal.
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