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Tuesday, February 27, 2024

Mourinho, forced to pay a personal income tax debt from when he coached Real Madrid

The Supreme Court has confirmed that the Portuguese coach Jose Mourinho must pay a debt corresponding to the tax settlement related to the Personal Income Tax (IRPF) for 2011 and 2012, when he managed Real Madrid.

In 2018, the Central Economic Administrative Court dismissed his claim relating to personal income tax for the periods 2010-2012, which resulted in a tax fine of 571,073 euros and a settlement agreement of 881,368 euros.

The National Court later annulled the sanction and declared the right of the Administration to determine the tax debt corresponding to 2010 to have expired. but it did maintain the years 2011 and 2012.

Jose Mourinho.

Mourinho appealed the settlements of these two years because he alleged the incorrect assessment of the economic court on the taxation relating to payments received through the mediation of his contract with Real Madrid.

Specifically, he alleged that these payments could not be considered his remuneration because it was not proven that the club paid the Gestifute company, dedicated to intermediation between athletes and football clubs, on its behalf, but it was Real Madrid who required the services of this company and he paid him for it.

But now the Contentious-Administrative Chamber of the Supreme Court rejects his appeal and requires you to complete the settlements for 2011 and 2012 remembering that neither withholding occurred nor was subject performance declared by the coach in those payments, which is why he did not include it in his personal income tax return.

And he emphasizes that “the Tax Administration cannot be blamed for any infraction in those years, since “no lack of diligence is evident in the present case, especially considering that it was not until the corresponding legal classification, carried out by the inspection, regarding the amounts paid on which no withholding was applied, when the obligation to withhold said amounts by the payer was confirmed”.

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