April 11, 2021

Mourinho accepts one year in prison for tax fraud

Mourinho accepts one year in prison for tax fraud

Portuguese coach José Mourinho has accepted on Tuesday the sentence for which he is convicted of tax fraud to one year in jail – he will not comply because he lacks a criminal record – and to pay a fine of more than 3 million euros , after accepting the indictment of the Prosecutor's Office of Madrid.

According to this letter, which has had access to Europa Press, Mourinho incurred two crimes against the Public Treasury after signing in 2004 a contract that simulated the transfer of exploitation of their image rights to the company Koper Services SA, domiciled in the British Virgin Islands.

With this, the Portuguese was denounced by the Economic Crimes Section of the Provincial Prosecutor of Madrid accused of defrauding 3.3 million euros in Personal Income Tax (IRPF), specifically 1,611,537 euros in 2011 and 1,693,133 euros in 2012.

From the data that the State Agency of the Tax Administration (AEAT) sent to the Public Prosecutor's Office, it appears that on an indeterminate date, "but before September 17, 2004", the defendant signed a contract by which he transferred his image rights to the company with headquarters in the British Virgin Islands Koper Services SA.

On September 17, 2004, it signed a new contract for the transfer of its image rights between Koper Services S.A. and the Irish Multisports & Image Management Limited and four years later (on December 22, 2008) the Irish company signed a representation contract with Polaris Sports Limited, which had the same registered office, to seek and negotiate commercial contracts.

"All these corporate structures were used by the defendant in order to physically render opaque the benefits derived from their image rights," said the Public Prosecutor in his complaint.

After leaving his position as coach at Chelsea, Mourinho signed on March 31, 2010 an employment contract with Real Madrid and moved his residence to Madrid, which is why he acquired the status of tax resident in Spain. However, "with the intention of obtaining an illicit benefit", it submitted its statements for 2011 and 2012 on time without declaring its income from the transfer of its image rights.

On July 23, 2014, the AEAT informed Mourinho that it was going to investigate its personal income tax returns for the 2010-2012 and 2013 Non-Resident years and contributed the certificates issued by Global Directors Limited from which it emerged that Operating Nominees Limited boasted 100 percent of Kooper Services SA

It was then when the Tax Agency made the corresponding settlement in which the expenses passed on by Kooper to the defendant were admitted, resulting in that the income received and not declared for the image rights was 3,249,521 euros in 2011 and 2,805,903 euros in 2012 Hence, the defendant signed on July 3, 2015 act of conformity, recognizing the lack of declaration of image rights, acceding to the payment of a penalty of 1,146,307.83 euros.

However, after the compliance report, the AEAT became aware that Kooper Services S.A. "was created by the complainant in order to conceal his image rights" and that he owns one hundred percent of said company through the Kaitaia Trust, based in New Zealand, of which Mourinho is also founder and beneficiary with his wife and children.

"Given that there is no difference between the defendant and the company Kooper, the defendant presented in the file documentation relating to expenses of the company that do not correspond to the reality," concludes his argued complaint of the Prosecutor.

As a result, the amounts that should have been included in the Taxable Base of the Personal Income Tax of the defendant are 3,778,074.35 euros and 3,262,298.76 euros, thus causing alleged damage to the Treasury Public 1,611,537.61 euros in 2011 and 1,693,133.05 euros in 2012.

On July 10, the accused paid to the Tax Agency 462,323 euros corresponding to 225,454.11 euros (2011) and 236,869.31 euros (2012), these being the amounts pending payment, as the resulting deduction of the fee defrauded (1,611,537.61 euros in 2011 and 1,693,133.05 euros in 2012), the amounts paid administratively: 1,386,083.50 euros (2011) and 1,456,263.74 (2012).

Also, that day also the defendant has proceeded to the payment of 121,764.81 euros in interest for late payment. In the oral hearing held on Tuesday at the Hearing has been read the sentence where he is convicted, for each of the two offenses, to six months in prison, with special disqualification for the right to vote during the time of sentence .

As for the fine, with 60 percent of the fee defrauded, are 966,922.56 euros for 2011 and 1,015,879.83 euros for 2012, with personal liability in case of non-payment of one month and the loss of the right to obtain fiscal incentives or subsidies for two years.


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