The simulation punishable in the tax offense: the image rights of the world of football –

Norberto J. de la Mata

Soccer is soccer, what would I say Vujadin Boskov.

In tax felony legislation there’s nonetheless doctrinal controversy on points associated to the admission or not of the punishment of the try, the potential of accepting the felony continuity, the remedy of the unqualified participant when the duty of the taxpayer can’t be affirmed, and so forth. However, actually, what continues to be being mentioned within the courts is what’s against the law and what’s not; about which behaviors are irregular, questionable, debatable and that are felony. And other than the apparent assumptions of alteration or concealment of details, the primary dialogue has been raised, together with taxation, on the excellence between tax planning, tax engineering or possibility economies, on the one hand, that are lawful and criminally irrelevant behaviors and alternatively, legislation fraud (or battle within the utility of the rule in keeping with artwork 15 LGT, much like 6.Four CC), extra controversial, and simulation or simulated enterprise referred to in artwork. 16 LGT. These final behaviors, each criminally related. In any case, regardless of the doctrinal discrepancies on the definitions of every of the figures, it appeared that the assumptions thought-about felony had been clear.

However right here comes the Sentence 672/2019, of November 25, of the Thirty Section of the Provincial Court of Madrid in another case (of the surprisingly few that also exist) of “accused athlete.” Probably the most conventional thesis was expressed by the STS of December 28, 2003, which states:

“In any case, the appellant’s criterion can’t be shared within the sense that the fraud of the legislation exempts the tax offense […] And it isn’t doable to understand a minor devaluation within the habits of somebody who intentionally and consciously conceals the standard circumvention by fraud of the legislation, respect for individuals who merely fail to make the cost with a larger danger of being found […] However in fact the fraud of the legislation doesn’t forestall the applying of the eluded norms, together with those who criminally sanction tax avoidance in sure instances ”.

Nonetheless, the STC 120/2005 of May 10 change the factors and say:

“[…] whereas the enterprise simulation includes as a attribute aspect the presence of a deception or malicious concealment of fiscally related knowledge, in tax legislation fraud there isn’t a such concealment because the system used is clear ”,

understanding that in such instances the atypicality of the habits have to be affirmed. Their arguments are as follows: tax legislation fraud shouldn’t be totally different from artwork. 6.Four CC, this has nothing to do with the idea of fraud or fraud typical of Prison Legislation or with the thought of ​​simulation. In legislation fraud, the details are usually not hidden however relatively the existence of a extra favorable authorized means (protection rule) offered for the achievement of a unique function is taken benefit of to keep away from the applying of one other much less favorable one (defrauded rule), fraud of tax legislation seeks to cut back the tax burden of the taxpayer by benefiting from the avenues provided by tax rules issued for one more function. Performing in fraud of legislation is clear and there’s no simulation or misrepresentation of the tax base; There isn’t a direct violation of the authorized system and the subjective aspect of tax fraud doesn’t concur, that’s, the particular intention of inflicting the standard injury by an motion or omission geared toward it, with out the injury to revenue being ample for the crime of property. Concluding that it isn’t doable to incriminate the conduct of fraud of legislation (in the identical sense, STC 48/2006).

With out theoretically various the factors (and in an identical case), the STC 129/2008, of October 27, nonetheless, broadens the idea of fraud, understanding that “can come to know using authorized figures outdoors of their very own function and with trigger within the avoidance of paying taxes“, concluding that the shortage of financial logic past what the non-payment of taxes might entail”May very well be thought-about a component of simulation, accepting in these instances against the law (on what are clear simulation assumptions, see the STC of February 13, 2006 and the STS of July 12, 1992; October 1, 2010 and September 20, 2012).

Fraud of legislation is the product of a authorized or legislative approach deficiency. And there’s nothing else in it than a contest of guidelines whose resolution often is the one given by the Tax Administration, however with out this implying an appreciation of fraud in whoever opted for the rule ignored by the Administration. That is expressed within the artwork itself. 15 LGT, which not even speaks of instances of legislation fraud, however of battle within the utility of the tax legislation, establishing the principles to use in such case.

Utterly totally different is the act or simulated enterprise. Right here actuality is falsified in order that simulation applies a rule that isn’t relevant. Underneath the guise of a particular enterprise, a enterprise is definitely hidden with none trigger or a enterprise that does have it however is totally totally different from the one which claims to be claimed (absolute simulation and relative simulation). In any simulation, it’s meant to cover the true reason behind the enterprise that’s celebrated between the events and thus disguise the truth that should give object to a particular taxation. And this can be a crime.

That is the roughly advanced principle.

Effectively, till now sentences have been handed down (it’s true that in accordance) in all instances during which sure footballers ceded their picture rights to corporations in trade or not for a sure sum of money. What’s new about this Judgment during which the defenses themselves requested the free acquittal of their defendants to use the crime with totally different extremely certified mitigating elements (reparation and delays)? The Court docket distinguishes between absolute simulation and relative simulation, it appears to be like at the truth that on this case the corporate is predicated in a member state of the European Union (Portugal, though with a tax regime, which corresponds to Madeira, completely totally different and far much less burdensome), not in a “tax haven”, during which there isn’t a concealment of the details and during which The Firm does handle picture rights.

What is taken into account confirmed is that the XA course of doesn’t declare revenue obtained from the exploitation of picture rights as a result of it avails itself of a extra advantageous tax possibility. Which? It transfers its rights on August 1, 2009 to Firm Okay. in trade for 5 million euros, which had been paid in successive years, This entity is predicated in Madeira, making use of a complete tax exemption till 2012 (subsequently, a tax charge of 4% in 2012 and a charge of 5% between 2013 and 2015). Its proprietor was one other entity domiciled in Panama, which acquires Okay’s shares from two entities domiciled within the British Virgin Islands. On December 16, 2009, the defendant XA acquires the entire of Okay’s shares for five,000 euros. All this by the corresponding intermediation of advisers and attorneys.

In opposition to the factors of the Public Prosecutor’s Workplace and the State Bar, which keep that the sale of picture rights was not actual, however simulated, The Court docket factors out that it’s essential to tell apart between absolute simulation, when the events look like making a contract that, in actuality, they don’t need to have any authorized life, and relative simulation after they actually need a totally different authorized enterprise (simulated enterprise) from that created externally by the events (obvious enterprise) and understands that solely the three tax crimes charged would have been dedicated if the switch of the exploitation of the picture rights needs to be categorised as false, fictitious, non-existent, as a result of “if the contract had been lined by a real trigger, this must be thought-about authorized for tax functions, since article 92 of the revenue legislation would defend the absence of taxation ”. In different phrases, if I do it effectively, there’s relative simulation and if I’m a stoner the simulation is absolute.

The Court docket admits that the dynamic used is “actually hanging, consisting of the placement -through a type of firm manager- of a international entity benefiting from a system of null or minimal taxation, the switch to the identical of the picture rights of the skilled participant and the acquisition -only just a few months later- by the participant himself of the whole capital of that entity “. However he understands that this “singularity” mustn’t result in qualify the conduct prosecuted as felony, though Portuguese society lacks materials or human infrastructure. The Judgment is clearly extra detailed within the account of details and foundations, however this entry within the Weblog doesn’t require additional element. It needs to be famous that the Court docket considers it important to tell apart that the Firm was not a purely formal instrument of revenue and funds used to keep away from paying the taxes due as a result of the switch of picture rights was false, however relatively that developed the operate of exploiting the picture of the accused. Even when it was solely his picture and even when the society was his.

In brief, {that a} skilled (not solely a footballer, I perceive) can contract with (and I perceive that then additionally represent) an organization (in an space of ​​zero or very helpful taxation and maybe additionally in tax havens) of which he’s the only proprietor of their capital to completely perform assortment procedures for actions carried out by that individual, no matter they could be (in fact, not solely exploitation of picture rights). Is that what’s being mentioned? Is not that simulating? Is not this dishonest? As a felony prosecutor, one thing escapes me. Will probably be that the intricacies of tax legislation are extra advanced. I might not say that the sentence is scandalizing but it surely doesn’t encourage compliance with taxpayer duties.

Postscript: I confer with XA and Okay. as a result of the Judgment itself says that “the dissemination of the textual content of this decision to events not within the course of during which it was issued might solely be carried out after dissociation of the private knowledge that they contained and with full respect for the proper to privateness […]”, Though all of the media have echoed it and though theoretically we face a Justice that shouldn’t be” secret “.


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