Real Madrid star Cristiano Ronaldo has accepted a €18.8 million (US$20 million) fine and a two-year suspended prison sentence for tax evasion in Spain.
The former Manchester United player was accused of four counts of tax evasion. He is said to have taken advantage of a company structure created in 2010 to hide income from the tax authorities that was generated from his image rights in Spain. The dodge involved using companies in low-tax foreign jurisdictions such as the British Virgin Islands and Ireland.
The Spanish authorities said Ronaldo declared just €11.5 million (US$13.3 million) earnings in Spain for the period 2011-2014 when his earnings actually totalled €43 million (US$49.8 million). He was also found not to have declared €28.4 million (US$32.9 million) in image rights agreed for 2015-2020, leaving €14.7 million (US$17 million) owing.
Ronaldo’s legal team had previously blamed the shortfall on a different interpretation of which revenue he was obliged to declare in Spain.
Had the case gone further without the player offering a full settlement, he could have faced a fine of as much as €28 million (US$32.4 million) and a three-and-a-half-year jail term, according to the Spanish tax office union Gestha.
In a statement to The Local issued by the Gestifute sports agency that represents him, Ronaldo insisted he had "never hidden anything, nor have I had the intention of evading taxes". But according to some reports, tax officials are calling for Ronaldo's fine to be increased and have said a deal was struck too soon.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
Real Madrid star Cristiano Ronaldo has accepted a €18.8 million (US$20 million) fine and a two-year suspended prison sentence for tax evasion in Spain.
The former Manchester United player was accused of four counts of tax evasion. He is said to have taken advantage of a company structure created in 2010 to hide income from the tax authorities that was generated from his image rights in Spain. The dodge involved using companies in low-tax foreign jurisdictions such as the British Virgin Islands and Ireland.
The Spanish authorities said Ronaldo declared just €11.5 million (US$13.3 million) earnings in Spain for the period 2011-2014 when his earnings actually totalled €43 million (US$49.8 million). He was also found not to have declared €28.4 million (US$32.9 million) in image rights agreed for 2015-2020, leaving €14.7 million (US$17 million) owing.
Ronaldo’s legal team had previously blamed the shortfall on a different interpretation of which revenue he was obliged to declare in Spain.
Had the case gone further without the player offering a full settlement, he could have faced a fine of as much as €28 million (US$32.4 million) and a three-and-a-half-year jail term, according to the Spanish tax office union Gestha.
In a statement to The Local issued by the Gestifute sports agency that represents him, Ronaldo insisted he had "never hidden anything, nor have I had the intention of evading taxes". But according to some reports, tax officials are calling for Ronaldo's fine to be increased and have said a deal was struck too soon.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
