Eto’o Risks Five Years in Jail over Alleged Tax Evasion

The Cameroun striker signed for Anzhi Makhachkala, a club from the volatile North Caucasus region and owned by Russian billionaire, Suleiman Kerimov, last August, in a record-breaking move that made him the richest player in the world on an annual salary of 20 million euros, has accused Cameroun’s striker Samuel Eto’o of conspiring to evade 3.5 million euros ($4.4 million) in taxes owed on income from his image rights when he was playing for Barcelona between 2006 and 2009.

read more

The Barca and Inter Milan former player, now with Russian Premier League club, Anzhi Makhachkala, is accused of four tax offences, each punishable with up to five years in prison and a fine of as much as 21 million Euros.

The case presented by the prosecutor on June 15 at a Barcelona court, and which was seen by Reuters yesterday, asked a judge to open proceedings against the player before the statute of limitations on one of the alleged offences expires tomorrow.

Spain recently launched a drive against tax evasion as it struggles to meet tough European deficit reduction targets that have meant budget cuts for hospitals and schools. Eto’o allegedly created two companies, one in Hungary and another in Spain, and used them to channel income obtained from ceding his image rights to Barca and sportswear maker, Puma, the prosecutor said.

The Hungarian company paid one of the lowest corporate tax rates in Europe – 10 per cent to 19 per cent – while the Spanish company paid a reduced corporate tax rate of 30 per cent to 35 per cent, instead of the 45 per cent income tax rate, the charge said. Eto’o also allegedly used the Spanish company to deduct personal expenses, such as payments for his mortgages, furniture and expenses related to his luxury cars, the complaint added. Eto’o and his club could not immediately be reached for comment.

The prosecutor also accused Eto’o’s former agent, Jose Maria Mesalles, and the manager of the Spanish company, Manuel de Jesus Lastre, of the same tax offences. Eto’o filed a lawsuit against Mesalles at a Barcelona court last year, accusing him of betraying his trust and of embezzling money, local media said.