Cristiano Ronaldo diverting sponsorship tax from Spanish authorities

Posted Friday, December 02, 2016 by Marca.com

In an effort to avoid paying a larger sum of tax on his sponsorship earnings, Real Madrid winger Cristian Ronaldo is said to be funelling image rights cash through an offshore company.

Based in Republic of Ireland, Multisports & Image Management Ltd. (MIM) offers an avenue to accept money for advertisements via the Western European nation, where corporation tax rates are a lowly 12.5 percent.

El Confidencial and Football Leaks report that Ronaldo has used MIM for his image rights earnings from deals with, among others, Nike, Toyota, KFC, Unilever, and Konami.

The Spanish tax authorities will investigate lost tax receipts when funds earned in the country are diverted through offshore accounts, even when billed through a corporation, with the Los Blancos star potentially owing as much as 43.5 percent tax on those earnings.

Reports also suggest that the Treasury alone would pursue the case, dismissing potential criminal proceedings, with the power to demand the amount owed be paid in full along with a fine, if found guilty.

An official spokesperson from Ronaldo's camp has stated that the player has been aware of his tax obligations since beginning his career, is not currently and has never been in trouble with the Treasury, and manages his image rights according to current legislation.