The opening of Spain’s criminal tax trial against Argentinian Foot Ball Sportsmen Lionel Messi of FC Barca, May 31st 2016 has plenty of star power. Messi earns over $50 million a year in salary and bonus, along with that $20 million from endorsements. Messi Topping as #4 in the list of highest earning athletes around the world according to Forbes. He also has more number of Golden Ball and other plenty awards. Yet he still faces tax evasion suites that might send him to jail, along with his dad Mr. Jorge Horacio Messi.
The pair are accused of using a chain of shell companies in Belize and Uruguay to avoid paying taxes on 4.16 million euros ($4.7 million) of Messi’s income from image rights from 2007-09. They face three counts of tax fraud, which could mean 22-and-a half months of jail if they are found guilty. There would also be fines based on the amounts allegedly defrauded. Jail still seems unlikely, but the stakes are still huge. It did not help that Messi’s name came up again in the Panama Papers.
For Americans, and increasingly for just about everyone worldwide, the key today is transparency. Few could have predicted the Armageddon that changed Swiss banking. In 2009, the IRS and Department of Justice sliced through the Gordian knot of bank secrecy, netting account holder names and a $780 million penalty from UBS. Credit Suisse’s $2.6 billion fine and U.S. felony tax charge was an astounding hit. All Swiss banks have fallen into line or closed.
Spanish prosecutors seem focused on secrecy. They say the scheme relied upon hiding the names of the real owners of companies registered in the UK, Switzerland, Uruguay and Belize. Americans are particularly unable to hide anywhere for any reason. FATCA—the Foreign Account Tax Compliance Act—requires foreign banks to reveal American accounts holding over $50,000. Already in U.S. administrative cases with the IRS and tax prosecutions, trusts and companies are under fire.
The IRS and DOJ use these common devices to enhance the willfulness that may be present. In many ways, the cover-up is worse than the crime. Such layers can make innocent activity willful, meaning penalties or jail. A key element in Messi’s case is the clandestine nature of the tiered arrangement. The deal was structured to keep his name hidden. The Spanish prosecutor alleges that money was routed through U.K. and Swiss companies and then to companies in Uruguay and Belize. The reason? To make it opaque.
Article : Robert Forbes
댓글 쓰기