Alonso facing 5-year jail term for tax fraud
Print Edition
Spanish prosecutors are seeking a five-year prison sentence for Xabi Alonso, accusing the former Real Madrid midfielder and Spain international of three counts of tax fraud.
Alonso, 36, is accused of defrauding tax authorities of about 2 million euros (US$2.4 million) by filing fraudulent tax returns in 2010, 2011 and 2012. Alonso, who retired last year after three seasons at Bayern Munich, played for Real from 2009 through 2014.
Prosecutors also want Alonso to pay a fine of 4 million euros in addition to the amount allegedly defrauded. The irregularities are related to Alonso’s income from image rights.
Prosecutors yesterday also sought prison sentences, fines and restitutions for Alonso’s financial adviser, Ivan Zaldua Azcuenaga, and the administrator of his shell company, Ignasi Maestre Casanova.
All accused have denied wrongdoing.
The case against Alonso had initially been dismissed but was reopened in January after the Madrid court judges on appeal found the facts alleged against Alonso were “sufficiently substantiated”.
Alonso sold his image rights in 2012 for 5 million euros to an investment firm, Kardzali Comercio Servicos de Consultoria e Investimentos, based on the Portuguese island of Madeira.
By receiving image rights income through companies, players can pay tax at the corporate income tax rate, which is much lower than the personal income tax rate that applies to their salaries.
Former Liverpool favorite Alonso, who retired last year, is not the first high-profile footballer to have faced problems over Spanish tax in recent years.
Some have admitted fraud in exchange for a sentence to avoid jail, like Manchester United forward Alexis Sanchez, former Barcelona midfielder Javier Mascherano and Real defender Marcelo.
Barcelona’s Lionel Messi was sentenced to a fine of 2.1 million euros for tax evasion and a sentence of 21 months in prison, subsequently issued as a fine.
Real striker Cristiano Ronaldo is also charged with alleged fraud of 14.7 million euros, which he denies.
Other players investigated in Spain include Luka Modric, Ricardo Carvalho, Angel Di Maria, Radamel Falcao and Fabio Coentrao.
United manager Jose Mourinho is also being investigated for the time he worked at Real.
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