Madrid – The Audiencia Nacional has ruled in favor of Xabi Alonso, former Real Madrid footballer and current coach of Bayern Leverkusen, in his dispute with the Tax Agency. The agency demanded 288,507.58 euros from him for not declaring the income tax of the payments that his representative received in 2012 from the club.
The Treasury argued that Real Madrid’s payments to his agent, based on the 2009 contract, were in reality remuneration for Alonso’s representation services. Therefore, as the club was the one assuming the payment, these amounts should be considered as Alonso’s labor income.
In the regularization, the Inspection attributes to the plaintiff, as employment income, the remunerations that the Real Madrid football club paid to the company of the player’s agent IDUBServicios Deportivos. Specifically, 354,000 euros in 2012.
Tax Agency
The Audiencia Nacional has upheld Alonso’s appeal against the resolution of the Central Economic-Administrative Tribunal (TEAC) of 2021, which in turn confirmed the decision of the Regional Economic-Administrative Tribunal (TEAR) of Madrid. The latter supported the Treasury’s claim for the lack of taxation of 168,083.06 euros in the 2012 personal income tax return, plus a penalty of 120,424.52 euros, totaling 288,507.58 euros.
The Court notes that the Administration exceeded its powers by considering the payments to the agent as the player’s employment income.
Previously, Alonso had already avoided a claim from the Tax Agency for an alleged fraud of almost two million euros between 2010 and 2012, following a decision by the Supreme Court.
In that case, the high court rejected the State Attorney’s appeal against the ruling of the High Court of Justice of Madrid, which upheld the acquittal of the former footballer and his tax advisors for the transfer of his image rights to the company Kardzali.
