The Argentine footballer, often voted among the best players in the world, and his father are being investigated in Spain for defrauding the state of more than £3m (€4m, $5m) in tax.
The Times reported that documents filed with Spanish courts accused Messi of using UK firms to register nominee owners and shareholders before moving it to Belize and Uruguay.
The papers allege that the footballer used the scheme to hide the fact that he was the ‘recipient and beneficiary’ of income.
'Never committed infringement'
The investigation into Messi’s tax affairs first began last June, despite Messi appearing unaware of the allegations until they were widely reported in the media.
In a statement posted on his Facebook page at the time, he said: “We have just [heard] through the media about the claim filed by the Spanish tax authorities. We are surprised about [the] news, because we have never committed any infringement.”
Director and tax specialist at Thomas Eggar LLP, Andrew Watters, said Messi’s case was atypical of tax planning schemes that provide an “artificial presentation of reality”, which recent avoidance rules in the UK have been designed to catch.
“The Spanish courts have refused the argument that Messi was simply relying on advice and the UK revenue authority also argues that taxpayers are responsible for their own affairs,” he said.
“So UK taxpayers, especially those who have acquired marketed schemes and are about to get notices requiring ‘accelerated payments’, need to decide whether their particular scheme, in their particular case, is based on solid ground or sand.”
Royal Assent
Accelerated payments were among the HM Revenue & Customs proposals that received Royal Assent last month.
The government body will also now be able to subject promoters of tax avoidance schemes to conduct and monitoring notices, and can “name and shame” those who fail to provide adequate information.
It will also now be able to issue follower notices when it considers principles established in one case as apposite to another, and can require individuals to pay disputed tax in advance of agreeing the final position in a case.
Click here to see four more celebrities who paid the price of tax avoidance.
