The ruling of a lower court, which mandated FC Barcelona to pay nearly €23 million in income tax (IRPF) derived from payments to football players’ agents between 2012 and 2015, was on Friday upheld by Spain’s National Court. The court rejected an appeal from Barça against the verdict made in June 2020 by the Central Administrative Economic Court.
The club had to meet a tax settlement of over €8.76 million but has also been hit with penalties of €3.03 million from 2012, €4.34 million from 2013, €5.17 million from 2014 and €1.41 million from 2015.
The National Court’s ruling states that the nature of the services rendered by the agents constitutes the substantive issue. According to the court, because agents work for the players and not the club, the money they are paid by the club is taxable.
The court said it appeared that “agents are providing a service commissioned by the club or representing the club,” when in fact the agents represent the players and act in their interest.
The relationship “between Barça and the agents only serves to cover up payments made by the club to players,” the ruling said.
“It appears that the club is reimbursing the agent for non-existent services, when in reality part of the remuneration is being paid to the player.”
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