Tax Fraud—A Messi Situation

It is nearly impossible to find a football follower on the face of the planet who doesn’t know the name Lionel Messi. Spearheading the Argentina attack for the better part of the last decade, Messi has seen his squad to the final game of the World Cup in 2014 and, more recently, a place in the Copa America semifinals. Off the field, however, Messi has drawn attention for a recent summons to the Spanish Courts for alleged tax fraud.

Background

 

In 2013, prosecutors in Barcelona filed tax fraud charges against Messi and his father for the years 2007-2009. It seems to be a common occurrence for the foreign players located in Catalan, with Messi’s countryman Javier Mascherano facing charges earlier this year. Though Messi has since paid his outstanding taxes, the charges have not been dropped.

Messi claims that he did not have any knowledge of these outstanding taxes, claims it is like trying to read Chinese for the first time. Instead, he left all of it to his father. This led the court prosecutors to split, with some saying he should walk, others saying he should be punished.

Here I am, torn. On one side, as an avid soccer fan, I want to see the best players on the field all the time. On the other hand, I support justice where justice is due. Messi does not claim ignorance of the law, but rather ignorance of the happenings of his money.

In his defense, it is easy to see how a superstar can get caught in the spotlight. Messi was a phenomenon at age 17, in a country known for its complicated tax system. Being constantly bombarded with practice, games, travel, sponsorship appearances, and ad campaigns can take up more time than one could fathom. And the financial implications? Staggering.

Discussion

 

Is ignorance enough to get Messi off the hook? Is there any possible way someone of his stature doesn’t know what is happening with his money? Every year, we hear stories of prominent figures in the media escaping charges. There are probably a lot of people with high social status evading prosecution. If we want a more just society, it is time to start taking people down even if it puts a damper on the games we know and love.

How do you view some of you favorite athletes and their tax problems?

I am an Editorial Associate at TaxConnections providing you with tax news from around the world.

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