Cristobal Montoro, the Spanish Finance Minister, mentioned in Parliament early this month that the investigations are going to be executed for those players who avoided paying taxes in Spain, as condemned by Football Leaks. According to the report by Jutarnji List last December 14, Luka Modrić, a Croatian playing for Real Madrid as midfielder and a captain for the Croatia national team, is among those included.
No exemptions for tax investigations
As stated by Montoro, no one can keep away from tax investigations. This was his response when Juan Carlos Giraute asked if the tax investigators had reviewed the information given out by Football Leaks, which were circulated through El Mundo, a Spanish newspaper.
The Tax Administration documents that were published indicated that Luka Modrić, Cristiano Ronaldo, Fabio Coentrao and Pepe from Spanish club Real Madrid are all subject to investigation on the suspicion of them opening accounts overseas in order to avoid paying taxes from sponsorship and advertising contracts in Spain.
Spain’s Tax Administration started an investigation last January 18 for Modrić, based on a published document from El Mundo. He is under investigation due to his company “Ivano SARL” in Luxembourg. Taxes in Luxembourg are only about 1% compared to the 30% in Spain to live and work. His wife Vanja manages the company with Modrić as the owner, according to El Mundo, who joined 11 other European media to a research consortium which published multiple private information and documents.
Montoro said that the tax inspectors are acting in accordance with what was declared by adding it with their data. He added that it is a complicated business, and that it usually takes a lot of time for an investigation to come to a conclusion.
Vigilance from the Spanish society
According to Montoro, the Spanish society must act aggressively against fraud since a person deceiving the France Ministry is robbing from everyone.
Montoro joined Mariano Rajoy, the centre right Prime Minister and a Real Madrid supporter. He mentioned that those who do not fulfil their obligations are cheating other citizens.
Paying taxes is a citizen’s obligation to his country. Even so, there are people not fulfilling their responsibility which is why there are tax investigations conducted. These investigations do not necessarily mean that a person is guilty right away. It is mostly a precaution set by a government. An investigation can be started any time which means that it is highly recommended to have an insurance against tax investigation, which ensures that expenses are covered and hassle is avoided during the process.