Hacienda Opens Neymar Tax Investigation
Neymar is being investigated by the Spanish tax authorities because of a bonus he received for renewing his Barcelona contract shortly before leaving the club for Paris Saint-Germain.
Spanish newspaper El Mundo report the Spanish tax office have asked the Barcelona Labour Court for all the documentation involved in the case in which Neymar and the club are trying to settle their outstanding debts.
El Mundo report the tax authorities are investigating whether the player’s renewal with Barcelona and his subsequent world-record transfer to Paris Saint-Germain (PSG) were taxed properly in Spain.
Reports state the intervention of the tax authorities in an ongoing judicial procedure is very rare and has been ordered to determine if Neymar paid the correct taxes on his 64.4-million-EUR bonus and on his 222-million-EUR transfer to PSG.
Neymar lived in Spain for over 183 days in 2017 and therefore has to declare all his income from both Barcelona and PSG as a tax resident in the country.
Barcelona reportedly made the first payment of 23.7 million EUR to Neymar for his renewal bonus and the Brazilian’s subsequent transfer left the rest of the bonus outstanding.
The Catalan club refused to pay the second amount and are now asking for the return of the entire bonus with interest, as well as a fine for damages which total around 75 million EUR , according to El Mundo.
Neymar is asking for the rest of his bonus to be paid with interest. The trial to determine the case will be held on 21st March.
Barcelona reportedly deposited the outstanding amount with a notary before Neymar decided to leave the club to show their willingness to pay it if the Brazilian stayed at the club.
The Spanish tax authorities also asked for the documentation of Neymar’s transfer to PSG. El Mundo report that PSG sent the documentation to the court but with the financial figures covered as they claim they are confidential.
However, the court will ask the French club to resend the documentation with all the figures uncovered.
Reports state Neymar’s contract with PSG, which has never been fully revealed, sees him earn around 40 million EUR
, which places him as the highest-paid player in the world along with Lionel Messi.
The case is ongoing.