17th November 2016
Following our blog last week outlining the current misfortunes (or indeed ‘missed-fortunes’) of Alexis Sanchez, the Barcelona football team has once again made tax evasion news. This time, the team’s forward, Neymar, along with his parents and two of the club’s executives, are facing calls to stand trial for alleged corruption. This comes as investigations into fraud surrounding the football stars’ transfer to the Catalan team come to a close.
The Barcelona club has already agreed to pay 5.5 million euros to Spanish tax authorities in relation to the case in which it is claimed the initial transfer contract was concealed and an incorrect fee was declared in order to evade tax payments.
But it doesn’t end there for Neymar
Now, however, Spanish courts are calling for corruption charges to be made against Neymar, his father – who acted as agent – and his mother – who is a 50% shareholder in the family business. The clubs chairman, Josep Maria Bartomeu, and his predecessor, Sandro Rosell, are also facing a potential trial for their involvement in the activity.
What this case really highlights is the extent to which all of those involved in tax evasion cases face penalties for wrong-doing. In this case, family members and club associates of Neymar are also facing charges, on top of the hefty fines that have already been put forward. For Neymar, you have to ask if it was really worth the risk given the damage this has done, and still has the potential to do, not just in terms of the financial penalties and possible charges, but also to personal relationships.
A warning to contractors
For contractors and recruitment agencies alike, this news should serve as a warning that anyone involved in tax evasion – whether carried out purposely or by sheer accident – can face coming to loggerheads with local authorities. It’s vital that recruiters placing contractors abroad have the expert guidance to navigate the complexities around employment laws across the globe in order to do their job effectively and with as little risk as possible.
For contractors, having the knowledge that your employment tax matters are being dealt with by experts can leave you to get on with the job at hand without the headache and worry associated with the world of tax compliance.
Speak to the team today to find out how we can help you or your contractors.