Tag Archive | "Spain"

Digital Business Tax Introduced in Spain


Some say that digital businesses have an easy time of it, in regards to tax. Many say they fly under the radar and don’t pay much at all.

Regular readers of this blog will be well aware of digital companies such as Google, Apple, Amazon and Microsoft. They pay almost no tax, despite making billions.

This is true all across the European Continent…not just in the UK.

So what is Europe going to do about it? Well, it is the country of Spain who are pulling out their big guns and getting ready for war.

The Spanish Finance Ministry have just announced plans to introduce a new “digital tax” that will apply to any business with a digital platform.

For example, Uber and Airbnb are two companies who get most of their customers from the internet, and up until now this has allowed them to pay only a small amount of tax, despite being multi-million pound companies.

Maria Jesus Montero, who is the Finance Minister of the Socialist Party of Spain (PSOE) had this to say – “We are going to look at appropriate tax treatment for this not-so-recent phenomena of the collaborative economy, particularly in the accommodation and transportation sector.”

She certainly seems to have it all figured out. No doubt they all sat round a fire at Socialist Summer Camp and worked out ways to get more tax out of digital companies.

Of course, the country of Spain is notorious for hounding companies and individuals for income tax.

Who can forget Lionel Messi and his “messy” situation. He had to pay a lot of money to the Spanish government to get out of that one.

The same can be said for whizzkid Ronaldo, who also had to write out a cheque in the millions to avoid the prison in Madrid.

Jose Mourinho was also in trouble and they even convicted the Man Utd boss of fraud, although he got off with a slap on the wrists. “Don’t do it again, Amigo,” they said.

And then there is our main man Wayne Rooney. When he got his move to Washington DC he asked Coleen what “DC” stood for?

“District of Columbia,” she replied

“I better start learning Spanish then,” he said.

So while our main man Rooney is sorting out his “Hola’s” from “Adios’s,” The Spanish Government is planning to start taxing digital companies like any other company.

Will the UK follow suit? My guess is…yes, which means if you own a digital business then you should hire a contractor accountant right away.

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Ronaldo in Court Over Tax Charges – Faces Jail


Regular readers of this blog will be aware of the Cristiano Ronaldo tax saga that has been going on since last year. Well, this week he was in court.

The Real Madrid star took to the dock and faced prosecutors who claim he has evaded almost £14 million pounds in tax. If found guilty in a Spanish court of law, then it’s possible Ronaldo could be doing some jail time, with a potential 3 and half years banged up on the cards.

Of course, because Ronaldo doesn’t have previous, then it’s unlikely that he is going to end up in the slammer if found guilty, but it is a possibility.

Also, you have the recent case of Barcelona player Lionel Messi who was found guilty of tax evasion in Spain. While some pundits were saying that he faced jail time, in the end all that happened is that he got a fine and had to pay back taxes.

I’m sure Messi didn’t enjoy writing out that cheque, but when you’ve got millions in the bank and don’t have to join the prison football team, then I’m sure the cheque got paid out to the Spanish government pretty quickly.

So will Ronaldo also be writing out a cheque? Right now it’s difficult to say, mainly because although the Real Madrid star did appear in court, he didn’t actually make any statement, although in a previous statement issued to the press he did mention that there has been no wrong doing on his part.

This court case in Madrid (where no guilt or innocence has been proven remember) has really caught the attention of media outlets worldwide, with one onlooker noting that 40 TV crews and 100 journalists were waiting outside of the court for a chance to speak with Ronaldo.

However, it appears the Portuguese footballer is as elusive off the pitch as he is on it, because he managed to dodge the media both entering and leaving the court, before being whisked away by his driver and back to his mansion in the suburbs of Madrid.

So what exactly are prosecutors claiming that Ronaldo did wrong? Apparently, they are saying he formed a complicated company structure, with the help of accountants, to hide income that was generated from image rights. Some commentators who are following the case closely also note that income may have been sent to offshore accounts in places like the British Virgin Islands.

Who knows exactly what has gone on here, but what I do know is that while many contractors in the UK might be reading about this story with interest, they are way more concerned about their business and income.

No matter if Ronaldo is proven innocent or he finds himself in jail for 3 and half years, the only thing you really care about is getting a good contractor accountant…something which you can find right here.

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Cristiano Ronaldo Investigated Over £120 Million of Tax


Not a week goes by without a big company or famous celebrity being accused of tax avoidance. This week it is the turn of Real Madrid star Ronaldo.

The richest footballer in the world has been accused by Spanish authorities of not paying £120 million in tax on income he has received in image rights, between the years of 2009 and 2011.

This has led officials in Spain to demand a large scale investigation against the Real Madrid player, and if successful, something tells me that the Spanish government will be getting a big cheque through the post from Mr Ronaldo’s accountant.

However, let’s just be clear here…right now nothing has been proven in a court of law, and as we speak this is all just allegations against Ronaldo. It could very well be that he has done nothing wrong and that this will be easily proven.

It isn’t the first time that a high profile football figure has come under scrutiny from Spanish officials, as last year Jose Mourinho was investigated about alleged tax avoidance while he was manager of Real Madrid.

I don’t think anything ended up coming of that investigation, although it’s difficult to say for sure because the result of these tax investigations very rarely get reported in the press, especially when innocence is proven or a small settlement is reached.

Back to Cristiano Ronaldo and reports are suggesting that Spanish Authorities believe that money was diverted to a shell company in the British Virgin Islands, and that approximately £120 million of tax has been avoided.

When asked about the issue previously, Ronaldo has denied any wrongdoing, even to the point where his agent released tax records for the footballer showing his exact incomings and outgoings.

I’m sure that Ronaldo hires a good accountant and makes sure everything is recorded accurately. Who knows, he might even keep details of all his earnings in a simple notebook? I’m sure it’s a bit more complicated than that, and his accountant no doubt uses the latest accountancy software to keep everything up-to-date.

Let’s wait to see what happens on this one anyway. At the end of the day, the Spanish government are yet to launch any kind of investigation and it might never happen. Of course, Ronaldo might be completely innocent and this could quickly be proven.

I’m sure everything will get sorted out quickly so that Ronaldo can get back to what he does best, playing football and showing the world his skills.

If you are a contractor then you might not have the skills of Ronaldo, and you probably don’t make as much money as him, but you still need an accountant, which you can find right here on this website.

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