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  • Nadal owed the Spanish taxman a few million

    2/20/12 9:53 PM | Johan Lindahl
    Nadal owed the Spanish taxman a few million The Spanish tax man took a big bite out of Rafael Nadal's fortune after the world No. 2 was sanctioned for some wrongful uses of Basque country tax incentives.

    The tax chaos was revealed by Spain's El Pais newspaper. The controversy was sparked by Nadal companies set up in the Basque country in 2005 and 2006 designed to take advantage of a more liberal tax regime for the quasi-autonomous northwest region.

    But investigations revealed that the Nadal companies actually did no business in the region, a key component of the lower tax rates, reported to sometimes be as low as one percent. Nadal and his advisers were forced to then change the headquarters of the companies over to his home island of Mallorca, where normal Spanish tax rates prevail.

    While no one is suggesting criminal intent, the sly move will cost Nadal big-time. According to the media report, the Nadals "only came to San Sebastian (in the Basque country) to eat the steak."

    The Basque tax regime is designed to promote business partnerships in the economically challenged region, but the regime may be due for a change according to El Pais.

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Comments

If this is true, I hope it's not too much. He did say all taxes had been paid.

Being patriotic obviously doesn't pay. He should move to M. Carlo.

nadline , 2/20/12 10:17 PM


Respectully, can the moderators delete this disgusting post from chr18, someone who only crawls out to spew out venom against Rafa!

I don't think bringing up someone's sexual preference or even mentioning it in conjunction with a political party, is an appropriate comment for a tennis forum.

Nativenewyorker , 2/21/12 12:48 AM


Huge Fed fan, but completely agree with NNY.

DanyalRasool , 2/21/12 1:21 AM


Hey chr18, I see you're back quite regularly these days?! You disappeared for a long time after you deeply embarrased yourself before the FO 2012 finals, when you were so hoping Soderling would beat Rafa and it didn't eventuate. What happened? You just had to come back? After posting some lame comments on youtube videos that is. Don't worry, I posted the same thing about Federer on some youtube videos and other forums too. It's easy enough to do, as you know.

I hope your bitterness and jealousy continues to eat inside you. It's lovely to watch!! I can't wait for you to put your fott in your oversized mouth again!!

jean , 2/21/12 2:02 AM


Hey chr18, I see you're back quite regularly these days?! You disappeared for a long time after you deeply embarrased yourself before the FO 2012 finals, when you were so hoping Soderling would beat Rafa and it didn't eventuate. What happened? You just had to come back? After posting some lame comments on youtube videos that is. Don't worry, I posted the same thing about Federer on some youtube videos and other forums too. It's easy enough to do, as you know.

I hope your bitterness and jealousy continues to eat inside you. It's lovely to watch!! I can't wait for you to put your foot in your oversized mouth again!!

jean , 2/21/12 2:03 AM


FO *2010

your *foot

jean , 2/21/12 2:05 AM


I dont think that's cheating. People move around within the country to regions where they pay fewer taxes, Fed himself moves within his own country to regions where he pays lower tax. The thing is, as long as it's not illegal to do so, it's up to the tax authorities to think of ways to prevent people from taking advantages of loopholes in the tax system.

Obviously the Nadals still want their money to be within Spain instead of having the funds placed somewhere in Monte Carlo or other tax haven. Now with their funds back to Malloca with higher tax rates, chances are they'll place some of their money overseas through some investments. I heard they invest in hotels in Mexico, Rafa has his real estate investment in Dominican Republic, there'll be more coming up. Rafa has his father and uncles to take care of his money, he just needs to concentrate on his tennis career and gives us many more years of his spectacular tennis.

luckystar , 2/21/12 3:16 AM


Missed me jean? Don't worry I won't be here long. Tennis is more boring these days with these six hour butt-picking, heavy-breathing contests. Oh what happened to your friends homo, edwhat'syournumber, clayking and raindrops? Maybe they are embarrassed or something?

chr18 , 2/21/12 3:19 AM


Tennis is not only about a six hour battle. Didn't Fed do battle with Rafa for three over hours, and both playing some spectacular tennis? Or Nole vs Murray at Rome last year, or Fed vs Tsonga at WTF last year, or Rafa vs Murray at Monte Carlo last year, or Nole vs Delpo at FO last year, etc and etc. Don't be so narrow minded and talk about only one match.

I personally never like a Rafa/Nole match, since long time ago, starting with Madrid 2009. When these two meet, it's always a slug fest. Rafa/Fed, Fed/Nole matches are full of spectacular shot making; Fed/Murray, Rafa/Murray and even Nole/Murray matches are good too, just not Rafa/Nole!

luckystar , 2/21/12 3:51 AM


I thought only Asian countries were not very accepting of alternate sexual orientation of people and it was still closeted.

It is surprising to me that even in Western countries, people still pass comments on alternate sexuality in a derogatory manner . I thought it was okay there and people didn't really care about it. Ofcourse I am assuming chr18 may hail from a WEstern country, which in itself could be wrong.

Even if Fed, Rafa, Murray, Djoko are gay- so what? Big deal!! Its their life, its their personal space, them being straight or gay doesnt undermine their tennis skills or achievements in any manner. Its time to recognize achievements, not be consumed by excessive hatred. Disgusting!!

sanju , 2/21/12 7:09 AM


Mr Lindahl, according to latest Spanish reports, Nadal has already made full payment of all his companies' back taxes to the Taxman. He does not owe anymore tax so will appreciate it if you do an update.

Those tennis players like Federer and Djokovic who live in tax haven countries really saved a lot of millions as they don't have to pay any tax on their earnings.

Perhaps Nadal will have to consider moving away from Spain. Vamos Nadal!

magdalene , 2/21/12 7:50 AM


Thanks, magdalene.

As for chr18, either he hates Rafa more than he loves Fed or he has a crush on Rafa. Why else would he continuously surf the internet for videos of Rafa, especially meaningless videos of Rafa and Moya hugging as doubles partners during a match, or sitting together in broad daylight with their tops off to support his ridiculous insinuations of Rafa's sexuality. To show how strapped he is for evidence, one of the clips was of the young boy Rafa shaking hands with Moya. If that's all the evidence you've got then you must be desperate.

chr18, just how much time do you spend surfing the internet to drool over Rafa?

I'm sure cheryl has not seen his post otherwise she would have deleted it.

nadline , 2/21/12 8:54 AM


chr18, you mention home, ed, clayking and raindrops who may not be posting for very good reasons, not because they lurk in a dark alley way waiting to pounce on Federer whenever they think he is vulnerable. You are just one of the many Fedfans who lie in wait for the opportunity to attack Rafa.

All I can say is, "Men will only throw stones at trees that are laden with fruit".

nadline , 2/21/12 9:18 AM


Don't worry I won't be here long.
chr18 , 2/21/12 3:19 AM

Is that a threat or a promise?

On the other hand, Rafa will be riding high so you will have nothing to say.

nadline , 2/21/12 9:29 AM


I see that chr18 hasn't learned anything from the past mistakes made on this forum. After posting nonstop rhyming poems about how Sod was going to beat Rafa again for days before the 2010 RG final, this person all but disappeared in disgrace.

Then to add insult to injury, Rafa went on to win Wimbledon yet again and the USO to cap off the career slam. No wonder chr18 went into hiding!

If I was the self-appointed moderator, then your despicable and gross post would have already been deleted!

Nativenewyorker , 2/21/12 10:45 AM


DanyalRasool,

Your comment is proof that Rafa and Fed fans can actually agree sometimes!

Thanks! :)

Nativenewyorker , 2/21/12 10:47 AM


luckystar, the article explains that the problem w/ what Nadal did he is that he didn't actually live in the low-tax area nor did his companies really do business there. that's why what he did was not legal and he now owes back taxes.

Emet74 , 2/21/12 11:25 AM


The headquarter was set up there and invested in companies there. The problem is not that it's an empty shell company, as it did invest in other companies and making profits from it's investment and hence the profits from it's investment are taxed at 1%. The problem is the owner of the headquarter is not a resident there and hence is not entitled to the 1% tax advantage. As reported, Rafa and his team of advisors have since rectified the situation and pay up the tax owed. It's up to the tax authorites to decide whether any other actions are necessary against Rafa. What I can say is that Rafa was being ill advised on the tax issues concerning his investments. He'll have to be more careful in future about where and what he invest in.

luckystar , 2/21/12 1:00 PM


Alright I read the article again. What it said was that they set up companies there, claiming the headquarter being in that region. They're doing business out of those companies there and paying special tax rate on profits made. I've read somewhere a few years back, that Rafa's father and uncles help to manage his wealth by setting up some companies, one of which was an insurance company (I'm not sure whether they set up a new company or buy over an existing company) in the said region. It seems that it's already a known fact that they're doing business there, meaning they're not hiding anything. It's just that now the tax authorities have decided they're not going to let non residents take advantage of the tax benefits there and hence are going after those non resident companies.

luckystar , 2/21/12 1:18 PM


No player's sexual preference is relevant to this topic. Please stop the gossip-mongering. Offensive posts deleted.

cherylmurray , 2/21/12 2:49 PM


"gossip-mongering"

RickyDimon , 2/21/12 3:26 PM


What chr18 hasn't noticed is that the title to this blog is in the past tense. It's stale news, Rafa has settled his tax bill and moved on. Pictures of him up to yesteday show a happy and relaxed Rafa.

nadline , 2/21/12 5:20 PM


Venga Rafa. Pay fair amount like Obama says.

conquistador , 2/21/12 6:55 PM


You've not got that quite right I'm afraid. There was no "wrongful uses of Basque country tax incentives" because Nadal like any other Spaniard was perfectly entitled to set up companies there under these special local tax conditions. What's happened is that the practice fell foul of European free competition laws and the criteria have had to be changed... and, unfortunately for Nadal, backdated.

lluisa , 2/21/12 7:16 PM


regulations I should have said, not laws...

lluisa , 2/21/12 7:59 PM


Thanks lluisa, that's what I thought too. The fact that they allowed the Nadals to set up companies there in the first place means it's not illegal, knowing full well the Nadals are not residents there. It's only reasonable that we want favorable tax rates for ourselves and since the law then allowed that, the Nadals weren't doing anything wrong. It's just that the authorities there have decided not to let non resident companies take advantages of the tax benefits there, and so the Nadals are one of those affected. Theyve since paid up the tax differences, rectified the situation and now things are back to normal.

luckystar , 2/22/12 3:48 AM


The article even specifically states that no one is suggesting criminal intent. As nadline said, this is old news and Rafa has rectified the problem by paying the back taxes.

Time to move on!

Nativenewyorker , 2/22/12 5:23 AM



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