Guardiola and Ancelotti hid their income. The main thing from the “Pandora’s Dossier”
The International Consortium of Investigative Journalists (ICIJ) has published the Pandora Dossier – offshore accounts of thousands of wealthy people around the world. Three people from the football world appeared on the list: Pep Guardiola , Carlo Ancelotti and Angel Di Maria .
What is offshore?
An offshore company opened in a “tax haven” allows the business owner not only to hide his data, but also to avoid taxation (or pay the minimum amount).
A tax haven, or an offshore zone, is an independent territory with a preferential regime for taxation, licensing and registration of non-resident companies.
The existence of an offshore company can be legal provided that the assets and income derived from the activity are declared to the authorities of the country where the beneficiary usually resides.
Guardiola. Andorran bank account
The Manchester City head coach is on the list of Alcogal, a law firm that provides offshore services: he is listed as the legal representative of the Panamanian offshore firm Repox Investments. It was created in February 2007 – at that time Guardiola had already retired, and four months were left before being appointed coach of the second team of Barcelona.
According to investigators, the bank in Andorra, Banca Privada d’Andorra (BPA), in which Guardiola opened a deposit account, proposed to create this company. At that time, it was common practice in banks in this country to invite clients to set up shell companies to hide the identity of the owners.
The Andorran bank account received Guardiola’s salary when he played for Qatar’s Al-Ahli from 2003 to 2005 – more than € 2 million per season. The coach’s tax consultant explained that his client decided to keep the money in Andorra because he did not have to pay taxes there, since he was not a resident of the country. In Spain, it was not profitable to keep funds: without a residence permit in Qatar, the Spanish Tax Agency could force Guardiola to file tax returns as a foreigner, despite the fact that he lived and worked in an Arab country.
The money was kept in Andorra and was not declared until 2012 – Guardiola never once informed the Spanish tax office about the accumulated funds and the interest received from the deposit during this time. In April of that year, the government of Mariano Rajoyapproved a bill granting a tax amnesty – such a relaxation, as conceived by politicians, was supposed to collect € 2.5 billion in tax arrears and shed light on at least € 25 billion hidden in offshore accounts. Guardiola was one of 30,000 people who took advantage of the amnesty and legalized about € 500,000, paying only 10% in tax on interest accumulated on deposits over the past four years. From the rest, nothing had to be paid at all – due to the exceeding of the statute of limitations: according to Spanish law, the tax authority may require payment of funds for a period not exceeding four years from the date of filing the tax return.
The exact amount that Guardiola pulled out is unknown.
Ancelotti. BVI company
The head coach of Real Madrid appears in the documents as the beneficiary of Vapia Limited, registered in the British Virgin Islands and managed by the London-based firm Appledore Wealth Management. According to journalists, the organization was created to manage Ancelotti’s image rights, which are valued at € 25 million.
In fact, there is little new in this information – in Spain, there has been an investigation into a tax crime that Ancelotti committed between 2013 and 2015 for a long time. In July of this year, he partially pleaded guilty for non-payment of € 1,062,079 in taxes for 2014 and agreed to pay this amount to the tax office: according to him in court, he did not evade payment, but only received “bad recommendations” from his consultants. But since 2015, the situation has not yet been resolved: Ancelotti claims that he does not owe anything to the Spanish treasury, because then he stayed in the country for only 183 days, which exempts him from paying taxes. The prosecutor’s office claims that he still has to pay – so the story is not over yet. In addition, the investigators accuse the Italian of evading the declaration of income from his image rights.
Di Maria. Panama offshore
Di Maria is the sole owner of a company in Panama, created in 2009 specifically to manage his image rights. The offshore company Sunpex Corporation Inc. advertising revenues were channeled, including from large companies such as adidas and Coca-Cola, and financial assets were managed from a bank account in Switzerland. It accumulated about $ 1.5 million in dollars, euros and pounds sterling, and Sunpex’s total assets reached $ 9.5 million by the end of 2016.
The player’s entourage explained that the opening of a dummy company was due to the “recommendation” of his accountant – the footballer himself did not know that this was an “unreasonable decision” that was contrary to Spanish law (then he was still playing for Real Madrid). Sunpex still owns all of Di Maria’s image rights, but since 2015 he has been paying tax on everything he earns in France – at least that’s what the Argentine’s entourage says.
It is impossible to liquidate the company without loss: in this case, the amount stored in the offshore account will be included in his personal assets as a French tax resident and the football player will have to pay more than 20% of the existing assets.
2 questions about Pandora Papers (or Pandora Papers)
What it is?
This is an investigation by an international consortium of journalists, based on an analysis of 2.94 terabytes of data from 14 companies that provide “offshore” services in countries such as Panama, the British Virgin Islands and the Bahamas. The array, which investigators managed to obtain, contains information about tax havens of businessmen, politicians, stars, athletes, members of royal families and leaders of religious groups from more than 200 countries.
For nearly two years, the consortium has analyzed over 11.9 million files: text documents, spreadsheets, emails, property registration certificates, shareholder lists, invoices, passports, and more. Based on the results of the work, it was possible to identify the owners of more than 29 thousand offshore companies; the largest number of records are in the UK, Russia, Argentina, Brazil and China.
Who else is featured in the Dossier?
The merged data contains more than 330 politicians and people in government positions, 15 heads of state of Latin America, 46 Russian oligarchs and 133 multimillionaires from the Forbes list. For example, the investigation mentions Konstantin Ernst , German Gref , Rostec head Sergei Chemezov , entrepreneurs Alexander Abramov and Leonid Lebedev , billionaire Gennady Timchenko , the family of Azerbaijani President Ilham Aliyev , Ukrainian President Volodymyr Zelensky , Czech Prime Minister Andriy Babish , former British Minister Tony Blair and his wife Cherie Blair, singer Shakira , singers Julio Iglesias and Elton John .