Argentine and FC Barcelona striker Lionel Messi who
just turned 26 this week, has reportedly set himself free in his battle against
the Spanish authorities over tax evasion. It was announced that the star footballer
has reached an agreement with Spanish tax authorities and will not face tax
charges. Messi has agreed to pay €15 million ($19,546,500 US) against claims
that he and his father, Jorge Horacio, who was also charged in the case,
hatched a scheme to avoid paying tax.
Messi and his
father allegedly used a series of shell companies in tax havens to shield
royalties and other licensing income from Spanish income tax. The tax havens, said to be located in Belize
and Uruguay, were the ultimate destination for the funds which were allegedly
funneled through an elaborate maze including the U.K. and Switzerland. The
scheme reportedly allowed the pair to avoid paying nearly €4.165 million ($5.5
million U.S.) in tax.
According to El Periodico in addition to the
settlement, Messi and his father have already paid €10 million ($1,3031,000 US)
to the Spanish Treasury for 2010 and 2011. He is expected to make an additional
payment for the tax year 2012 by June 30, 2013. That makes it likely that the
total paid over to the Spanish Treasury will reach €30 million ($39,093,000
U.S.).
Messi’s original court date was set for September
17. If convicted, he could have faced up to five years in prison and a fine of
up to €24 million ($31,274,400 U.S.) just for the initial years under
investigation. While the original complaint focused on the years 2006, 2007,
2008 and 2009, I had previously reported that the charges were expected to be
extended to include subsequent years. That appears to have been the case.
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