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Cristiano Ronaldo snubs media after 'tax discrepancy' court hearing
01/08/2017
REAL Madrid's Cristiano Ronaldo refused to speak to reporters after testifying in court over his allegedly having 'defrauded' the tax authorities out of €14.7 million, despite a huge stage with spotlights, loudspeakers, TV cameras and microphones having been set up for him to address the media.
Although the Portuguese Ballon d'Or winner entered the court via the back door to avoid the press, it had been agreed that he would give a statement after the hearing.
Given the huge media interest worldwide, hundreds of thousands of euros had been invested by private-sector TV firms in setting up a stage worthy of a prestigious rock star giving a concert, based upon Ronaldo's PR people having confirmed he would give a press conference.
At least 30 foreign media channels among the 200-plus camped out by the court in Pozuelo de Alarcón, Madrid since the early hours waiting for the trial to start at 11.00.
But when the player exited the building two hours later, he declined to make any comments or go up on the stage.
In a written press release issued by his PR firm later, Ronaldo said: “I've never tried to hide anything or avoid paying taxes; the Spanish tax office is aware of every detail of my income because we have sent them everything to do with it.
“I always make my tax declarations voluntarily and willingly, because I believe that we should all declare and pay our taxes in accordance with our earnings.
“Those who know me know exactly what I ask of my accountants: to keep everything up to date and correctly paid, because I don't want any problems.
“I am currently paying tax and Social Security in Spain, and am one of the individuals who pays among the highest amount of tax in the country.
“If my name was not 'Cristiano Ronaldo', I wouldn't have even been in court.
“I will make no further comment on the subject.”
Ronaldo told the judge that his conscience was clear and he was satisfied that his actions had all been above board.
He is accused of four counts of tax evasion between the years 2011 and 2014, based upon his 'image rights' – or royalties for his face and name being used in advertising – since he moved to Spain in 2010 for the start of his career with Real Madrid.
The ceding of his royalties to a company he had set up started in 2004, not in 2010, Ronaldo told the judge.
No 'special fiscal structure' had been set up since his move to Spain to cover his taxes, but he had continued with that created six years earlier when he played for Manchester United.
“The solicitors recommended to me by Manchester United created the company in my name in 2004 – a long time before I had even thought I would be moving to Spain,” he explained to the court.
“This type of structure is very common and above board in the UK, and was checked out by the British tax authorities, who confirmed it was completely legal.
“The same taxpaying structure set up for my time in the UK between 2004 and 2009 has been used ever since, between 2010 and 2014.
“Only two differences featured: the UK domicile of the company was removed, since it is not necessary unless you live in Britain; and I chose to be paid my full royalties personally whilst I was resident in Spain, to enable me to pay Spanish taxes.
“Neither of these changes was aimed at avoiding taxes or hiding income, and from the year 2015, I ceded my royalties to an independent third party and paid my taxes via said party.”
The discrepancy, according to Ronaldo, is whether his royalties should have been paid annually between 2010 and 2014, when he was considered non-resident or a temporary expatriate, or whether they should have been paid as a lump sum, which is what the player did in 2014.
As a result, the player explained, any unpaid tax would have resulted from the 'time lag' and the tax office's having considered, retroactively, that he was resident for tax purposes in Spain rather than in the UK prior to 2014.
The player revealed what he had told the court in the press release issued after he refused to speak to reporters as planned, which led to a great deal of booing and jeering among the crowds.
Ronaldo represented himself in court, without a lawyer, and in fluent Spanish without needing an interpreter.
Related Topics
REAL Madrid's Cristiano Ronaldo refused to speak to reporters after testifying in court over his allegedly having 'defrauded' the tax authorities out of €14.7 million, despite a huge stage with spotlights, loudspeakers, TV cameras and microphones having been set up for him to address the media.
Although the Portuguese Ballon d'Or winner entered the court via the back door to avoid the press, it had been agreed that he would give a statement after the hearing.
Given the huge media interest worldwide, hundreds of thousands of euros had been invested by private-sector TV firms in setting up a stage worthy of a prestigious rock star giving a concert, based upon Ronaldo's PR people having confirmed he would give a press conference.
At least 30 foreign media channels among the 200-plus camped out by the court in Pozuelo de Alarcón, Madrid since the early hours waiting for the trial to start at 11.00.
But when the player exited the building two hours later, he declined to make any comments or go up on the stage.
In a written press release issued by his PR firm later, Ronaldo said: “I've never tried to hide anything or avoid paying taxes; the Spanish tax office is aware of every detail of my income because we have sent them everything to do with it.
“I always make my tax declarations voluntarily and willingly, because I believe that we should all declare and pay our taxes in accordance with our earnings.
“Those who know me know exactly what I ask of my accountants: to keep everything up to date and correctly paid, because I don't want any problems.
“I am currently paying tax and Social Security in Spain, and am one of the individuals who pays among the highest amount of tax in the country.
“If my name was not 'Cristiano Ronaldo', I wouldn't have even been in court.
“I will make no further comment on the subject.”
Ronaldo told the judge that his conscience was clear and he was satisfied that his actions had all been above board.
He is accused of four counts of tax evasion between the years 2011 and 2014, based upon his 'image rights' – or royalties for his face and name being used in advertising – since he moved to Spain in 2010 for the start of his career with Real Madrid.
The ceding of his royalties to a company he had set up started in 2004, not in 2010, Ronaldo told the judge.
No 'special fiscal structure' had been set up since his move to Spain to cover his taxes, but he had continued with that created six years earlier when he played for Manchester United.
“The solicitors recommended to me by Manchester United created the company in my name in 2004 – a long time before I had even thought I would be moving to Spain,” he explained to the court.
“This type of structure is very common and above board in the UK, and was checked out by the British tax authorities, who confirmed it was completely legal.
“The same taxpaying structure set up for my time in the UK between 2004 and 2009 has been used ever since, between 2010 and 2014.
“Only two differences featured: the UK domicile of the company was removed, since it is not necessary unless you live in Britain; and I chose to be paid my full royalties personally whilst I was resident in Spain, to enable me to pay Spanish taxes.
“Neither of these changes was aimed at avoiding taxes or hiding income, and from the year 2015, I ceded my royalties to an independent third party and paid my taxes via said party.”
The discrepancy, according to Ronaldo, is whether his royalties should have been paid annually between 2010 and 2014, when he was considered non-resident or a temporary expatriate, or whether they should have been paid as a lump sum, which is what the player did in 2014.
As a result, the player explained, any unpaid tax would have resulted from the 'time lag' and the tax office's having considered, retroactively, that he was resident for tax purposes in Spain rather than in the UK prior to 2014.
The player revealed what he had told the court in the press release issued after he refused to speak to reporters as planned, which led to a great deal of booing and jeering among the crowds.
Ronaldo represented himself in court, without a lawyer, and in fluent Spanish without needing an interpreter.
Related Topics
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