Tuesday, June 20, 2017

The Ronaldo Story

If you follow sports in Europe, Ronaldo (the famous soccer player) has been dragged into court within Spain and accused of short-changing the government on taxes.  Amount?  14.5 million Euro over a 3 years (2011-2014).

It's turned into a major topic because he is coming up on salary negotiations and the court appears to be getting tough.

The current threat?  The court wants him to pay the 14.5 million Euro, and a one-million Euro fine to catch up on this tax episode from 2011 to 2014.

Ronaldo?  In some public statement....he's willing to pay the tax amount....but NOT the fine (one-million).  The threat?  If he doesn't get cooperative, they are talking about five years in prison.

The odd part of the story?  His current team would like for him to continue playing for them, and they'd like to arrange for the payment of the taxes/fine.  But I'm guessing they'd like for him to sign a contract with them, and recognize this tax/fine as part of the salary arrangement.....meaning a LOT less on salary for this next period.

I might speculate that he's not happy about the lesser salary, or the threat of jail. He might say sure....go ahead and jail me so I can't play, and I'll just keep the tax-payment and the fine.  For me.....five years in prison and keeping 15.5 million Euro might be worth the deal.

For the tax folks?  It attracts some negative attention.  They just want THEIR fair share of taxation.

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