A round-up of the latest tax issues within the world of football.

Newcastle United

English Premier League side Newcastle United has lost a High Court challenge over the seizure of documents during a raid by tax officials from HMRC, which was part of a probe into suspected income tax and National Insurance fraud, the Daily Mail has said.

According to the newswire, two judges, sitting in London on Wednesday, rejected a challenge by Newcastle over the legality of search-and-seize orders obtained by HMRC from a judge at Leeds Crown Court.

HM Revenue & Customs, the UK tax authority, had obtained and seized business and financial records as well as computers and phones belonging to the Northeast club during April’s raid. The investigation by the tax office was triggered due to financial issues within Demba Ba’s free transfer from West Ham United, another Premier League side that was also raided, to Newcastle.

A full court case was ordered after HMRC’s tax officials were banned in June by a High Court judge from examining material seized from Newcastle’s ground, after the club made a legal challenge.

During the case on Wednesday, Lord Justice Beatson and Mrs Justice Whipple ruled: “The warrants were lawfully issued.”

In a statement, a spokesman for HMRC said: “HMRC is pleased that the court agreed these warrants were lawful and justified in this case, and rejected each of the five grounds for which the review was sought. Our investigation into suspected tax fraud continues.”

The club said on its website: “We are disappointed with this decision given the court’s findings. We are considering all of our options with our advisors, including whether to pursue an appeal.”

Marcelo
Brazil and Real Madrid footballer Marcelo has become the latest player in Spain to be investigated by the country’s tax authorities, according to the Sun. Jose Mourinho, Cristiano Ronaldo and Lionel Messi have all been investigated for different reasons within the last 12 months.

The newswire said Marcelo faces investigation by the Spanish tax authorities over image rights payments. The authorities are looking into the money Marcelo declared in 2013.

According to a Spanish newspaper El Mundo, the Spanish tax agency AEAT has filed papers to the prosecutors for economic crimes to consider whether he needs to face court action over alleged unpaid taxes.

The Sun said that the Brazilian star filed his accounts for the 2013 two years ago, declaring £350,000 ($461,000) in image rights through the corporate tax scheme.

But the AEAT believe Marcelo should have declared the money he earned as a personal tax payment, which means he should have paid more to the state.

The 29-year-old has said all tax has been paid properly.

Miles Dean, a partner at Milestone International Tax, spoke about the latest tax issue in the world of football surrounding Marcelo.

"Footballers and image rights are a dangerous combination, especially when the cocktail is being stirred by the ever thirsty agent,” said Dean. “It appears Marcelo has been hard done by. He settled his tax debts in 2013, which he might legitimately have expected to be the end of the story, only for the Spanish authorities to reopen the case on new grounds, this time targeting his personal tax affairs, rather than corporate. It doesn't appear that any new facts have come to light which would justify this second bite of the cherry, suggesting instead that emboldened Spanish officials simply see footballers as rich pickings."