The tax authorities have found the club guilty of not disclosing correctly the compensation received by former players Alex Song and Arda Turan, whose contracts were mutually terminated.
Spanish giants Barcelona is se to be slapped with a massive €15.7 million fine by Spanish tax authorities for irregularities in their player payments.
The tax authorities have found the club guilty of not disclosing correctly the compensation received by former players Alex Song and Arda Turan, whose contracts were mutually terminated.
According to findings, Song was compensated up to €1.3m after he left the club in 2016, while Turan received €3.5m after he was released from his contract in 202.
Additionally, the club allegedly failed to declare the cost of loaning Audi cars to their players and the cost incurred on chartered flights.
The Spanish Treasury inspectors claim that the cost of flights and cars cannot be counted as part of salary and hence have identified the actions as a breach of regulations.
The investigation into the alleged tax fraud by Barcelona only began in 2019 but the offence dates back to 2015.
Barcelona is already undergoing a financial crisis and is aiming to raise €150m in player sales in the summer, along with cutting down significantly on their wage bill to comply with La Liga rules amid reports of a potential move to re-sign club legend Lionel Messi.
This heavy fine from Spanish tax authorities will no doubt take another financial toll on the club, given their financial struggles presently.
Barca is also under investigation by Spanish authorities and UEFA for payments totalling €7.3 million to former vice-president of the Referee’s Committee, Jose Maria Enriquez Negreira, between 2001 and 2018.
Barcelona is yet to put out an official statement regarding the alleged payment irregularities, and it remains to be seen whether they will challenge the decision in the coming days.
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