More Tax Trouble For Messi: Barca Star 'Consented' To His Dad's $5M Tax Evasion Scheme, Prosecution Says

A Barcelona court has agreed to take up a tax evasion case against Lionel Messi, the world’s best soccer player, and his father, Jorge Horacio, for using shell corporations to hide €4.165 million($5.5 million) from Spanish tax authorities. Messi, who for the first time was said to have “consented,” is expected to testify on September 17, alongside his father.

As we had previously reported, FC Barcelona star Lionel Messi, who netted $41.3 million in the year to June and is the world’s tenth-best-paid-athlete, and his father were accused by prosecutor Raquel Amado of hiding his true earnings from Spain’s tax authorities. On Thursday, a Barcelona judge accepted the case, setting a court date for the famous athlete and his father to testify.

While the prosecution’s original statements, picked up by Spanish media, noted Jorge Horacio, the athlete’s father, was the architect of the scheme, Thursday’s charges appear to smear the four-time FIFA World Player directly. According to Spanish daily El Pais, Messi “ratified” and “consented” to his father’s allegedly fraudulent scheme once he turned 18.Specifically, Messi’s father contacted “third parties” to build shell corporations in Belize and Uruguay, which were then ceded the Argentine striker’s imaging rights. These then signed deals with other companies in Switzerland and the U.K., helping the Messi’s hide more than €4 million in earnings between 2007 and 2009, according to prosecutor Amado.

Messi’s lawyer, Angel Juarez, wasn’t immediately available for comment. In a statement released last week when news of the accusations surfaced, Juarez noted he hadn’t received any notices from the prosecution. Beyond hearing of the accusations in the media, and immediately rejecting them, Juarez noted his team had been personally responsible for the star’s tax filings. In a post on his Facebook FB +1.32% page, Messi himself followed suit, noting he had always respected his tax obligations and that his legal team would take care of the situation.

According to El Pais, this type of tax fraud could result in one to six years in prison for the guilty parties, and a penalty of up to six times the amount evaded. As I’ve reported previously, while it appears unlikely Messi will end up serving prison time, the situation becomes all the more troubling given the difficult fiscal situation of Spain’s regional governments, with many of them bankrupt and having been bailed out by the central government. Barcelona, which is expected to qualify to the UEFA Champions League, is expected to play the first round of the premier club competition between September 17 and 18.




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