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Posted by portugalpress on August 10, 2018

After all the unpleasantness - the suspended two-year jail sentence for tax fraud and €18.8 million fine - Portuguese football hero Cristiano Ronaldo is to receive a €2.1 million refund from Spanish tax authorities due to an error in the latter’s calculation of VAT.

The slip will effectively reduce CR7’s fine to €16.67 million, say reports.

The error, explains Jornal de Notícias, is due to the fact that Ronaldo in fact had no legal obligation to pay Spain VAT on image rights earnings from contracts forged with Singaporean businessman Peter Lim, even though Lim himself operates out of Spain.

The contracts were made with companies based in the British Virgin Islands and as such “not subject to VAT in Spain”, particularly as they referred to services rendered outside Spanish territory.

JN appears to have picked up the news from Spanish newspaper El Mundo, saying Ronaldo has already cleared €13.4 million of his fine (click here), and will now have “only €3.3 million” to pay.

The tax deal forged with Spanish authorities still has to be “formalised”, says the paper.

It will involve Ronaldo “declaring himself guilty of four tax crimes and accepting a suspended prison sentence of two years which will eventually be substituted for a fine of €350,000”.

natasha.donn@algarveresident.com

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