Real Madrid forward Cristiano Ronaldo is reportedly facing an investigation into his tax payments after it was suggested he has been ploughing earnings from image rights and sponsorship into an offshore company.
El Confidencial and Football Leaks (h/t Marca) alleged Ronaldo has used Multisports & Image Management Ltd., based in the Republic of Ireland, to avoid paying more tax.
As noted by Marca “the Spanish tax authorities will investigate lost tax receipts when funds earned in the country are diverted through offshore accounts, even when billed through a corporation.”
It’s then stated Ronaldo could owe in the region of 43.5 per cent in tax on the earnings aforementioned.
It’s reported the Treasury will pursue the case, which would rule out the prospect of criminal proceedings against Ronaldo, though he would still need to pay back any money owed and potentially a fine if found guilty.
Sport noted that if Ronaldo has not declared this partnership to the Spanish authorities in the past, the case could potentially become a criminal one.
The Sport report said Ireland is the country with the lowest corporation tax in Europe, standing at around 12.5 per cent. Listed in the report are a number of sponsorship deals Ronaldo has in place, including links with Nike, KFC, Toyota, Konami and Unilever.
Ronaldo has previously seen questions raised about his tax payments in Portugal, Sport added.
However, according to the Marca report: “An official spokesperson from Ronaldo’s camp has stated that the player has been aware of his tax obligations since beginning his career, is not currently and has never been in trouble with the Treasury, and manages his image rights according to current legislation.”