Barcelona accused of tax fraud in Neymar signing

Brazilian forward Neymar in action for Barcelona. (AFP/Gerard Julien)

MADRID: Spanish public prosecutors have asked for Barcelona and their former president Sandro Rosell to be tried for two charges of tax fraud committed in the signing of Brazilian star Neymar.

Meanwhile, prosecutors have also asked for the investigation of current Barcelona president Josep Maria Bartomeu and the club on an extra tax charge in 2014, which could rise to €2.85 million (US$3.23 million).

In a judicial file released on Monday, prosecutor Jose Perals Calleja suggests that Rosell and Barca declared an inferior fee to that which they paid for Neymar in 2013. The prosecutors believe that Neymar cost in excess of the €57 million (US$64 million) declared to the Spanish tax man.

They cite the figure at a cost of €82.7 million (US$93.8 million) divided into separate contracts that secured the signing.

According to the calculations of the Spanish tax authorities, Barcelona owe a total of €12.1 million (US$13.7 million) in tax on the deal, which would see the overall cost of the operation rise to €94.8 million (US$107.6 million).

Rosell resigned as president over the affair just over a year ago when a complaint brought by one of the club's members for misappropriation of funds was taken to court.

In his testimony before a judge on the case in July of 2004, Rosell insisted that Neymar cost the club €57 million (US$64 million), €17 million (US$19 million) of which went to his former club Santos and €40 million (US$45 million) paid to N&N, a company owned by the player's father.

However, following Rosell's resignation, Barcelona also confirmed a number of extra agreements including a €10 million (US$11 million) signing bonus for the player and scouting and collaborative agreements between the two clubs taking the total to €86.2 million (US$97.8 million).

In February of last year, the club announced that they had made a voluntary payment of €13.5 million (US$15.3 million) to the Spanish tax authorities regarding the transfer.