Less than a month after Lionel Messi earned the 2014 World Cup Golden Ball (for those of you who don’t follow soccer, it’s the award for the tournament’s top player), the Argentine superstar is making news again… This time, however, Messi would probably want a pass on the attention.
A Spanish court has decided to move forward with prosecuting Messi for alleged tax evasion. The move comes despite a recommendation from the prosecutor that the charges be dismissed and despite Messi’s clear attempts to resolve his outstanding tax debts.
Messi was accused of using a number of shell companies set up 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.
It has been implied, and the prosecutor seemed to agree, that Messi’s father, Jorge, was responsible for the tax schemes. A Barcelona court didn’t buy that argument and finding that Messi could have known about the tax scheme. That was sufficient reason, in the court’s purview, to order Messi and his father to stand trial on charges this fall.
I’ve suggested before that Messi was targeted by Spanish tax authorities to send a message: I think we have our answer.
Messi, born in Argentina, is subject to Spanish income tax due to his lucrative deal with FC Barca. Messi re-upped his contract with Barca this year. He’ll earn $50 million per year, including incentives, through 2018. The new deal helped Messi move up to #4 on Forbes’ list of the 100 highest-paid athletes, behind Floyd Mayweather, Cristiano Ronaldo, and LeBron James.
All of that money might be able to buy Messi great counsel in the ongoing tax scandal – but not a break.
