The Spanish National Court has confirmed the Central Tax Tribunal (TEAC) resolution that imposed on Barcelona the payment of nearly $24.8 million for income tax (IRPF) between 2012 and 2015, derived from the payments made to agents.Another economic blow to Barcelona. The Administrative Litigation Chamber of the Spanish National Court has today ratified the resolution of the Central Tax Tribunal (TEAC) that imposed on Barcelona the payment of nearly €$24.8 million for income tax (IRPF) between 2012 and 2015, derived from the payments made to sports agents.The ruling states that the payments made by Barcelona to player agents, as they provide services to the players and not to the club, have the nature of employment income and are subject to withholding tax at the time of payment, so the club is obliged to withhold and pay the corresponding tax.🚨🚨| The National Court has ordered Barcelona to pay €23 million due to charges of fraudulently paying sums of money to players’ agents and referee’s during the 2012/15 period.[@forcabarca_ar] pic.twitter.com/sXZ1iPx5Za— Football Goals. (@thefootygoals) February 9, 2024 After examining the issues raised by the parties, the Administrative Litigation Chamber says that it is clear from the reading of the TEAC resolution that there has been a simulation.Based on the inspection findings, it appears that the club’s payments were made on behalf of footballers who actually received the services provided by the agents. However, it seems that the agents were acting on behalf of the club, which is not supported by any evidence. The documents in the file indicate that the agents were representing the players and acting in their best interest, which contradicts the situation described. The inspection concludes that the relationship between FCB and the agents was only established to cover up the payments made by the club to the players. This conclusion is also supported by the Chamber.##NAJAVA_MECA_7862679##The court explains that in tax simulation, the use of devices aimed at tax avoidance is necessary, that is, to enjoy tax advantages that do not correspond to the real operation carried out. It is about obtaining a tax treatment of the taxable event and its concurrent circumstances that are more favourable than the one that would correspond to the real operation.In the present case, the judgment states, “it appears to reward the agent by the club for non-existent services, when in reality part of the player’s remuneration is being paid in this way, for the services he provides to the club, with the corresponding tax impact, affecting corporate tax, VAT, and personal income tax, distorting the taxable base of such tax concepts.”The Catalan club issued a statement, announcing they will fight the decision.Football Club Barcelona has been notified of the ruling of the Personal Income Tax (IRPF) section of the National Court in relation to the appeal filed by the Club on the tax inspection that affected the remuneration paid to the players’ agents between 2012 and 2015. Football Club Barcelona will appeal to the Supreme Court.It is surprising that this section of the Contentious-Administrative of the National Court has not taken into account the most recent jurisprudence of the Supreme Court in this regard, and for which other soccer clubs have been able to benefit in recent judgments for the same problem.It is also surprising the divergent criterion of the National Court when a few months ago another section considered an appeal of our club on an issue identical to the current one that derived from the same inspection in relation to the Income Tax of Non-Residents.This judgment does not entail any payment obligation for the Club at the moment, and this contingency is duly provisioned in the annual accounts.
