World Cup Footballer To Settle With Spanish Tax Authorities

Robbie Lawther

12 June 2018

Real Madrid footballer Cristiano Ronaldo is discussing a €19 million ($22 million) settlement with the Spanish Tax Agency, which will bring legal proceedings against him to a close.

The Portugal international player, who will captain his country during the upcoming World Cup in Russia, is accused of four crimes relating to the taxation of image rights. This publication reported on the accusation in June last year.

Spanish newswire El Mundo said that Ronaldo will apparently still need to make an admission of wrongdoing in any settlement - and he remains keen to bring the final figure down - but he would avoid further sanction. He had previously denied claims of any wrongdoing.

This publication reported in April that Ronaldo had allegedly used more offshore firms than previously thought for his tax arrangements.

WealthBriefing has regularly reported on the image rights' tax avoidance crackdown in Spain surrounding a host of big names in the world of football, including Lionel Messi. Most recently, in March, this publication reported that former Liverpool and Real Madrid footballer Xabi Alonso is facing a possible five-year jail term after Spanish authorities accused him of tax fraud. This week, WealthBriefing also reported on HMRC's crackdown on footballers' tax avoidance schemes.

The profusion of cases against sports, media and entertainment stars in recent years raises questions about the duty of care that wealth managers and others owe to such persons, particularly in cases where clients are young and don't qualify under many regulatory rules as 'sophisticated' investors.