Alves wins tax fraud case, earns €3m payout- report

The Spanish tax authorities will have to return 3.2 million euros to Dani Alves after a higher court in the country upheld the player’s appeal in a tax fraud case, EFE reports.

Alves, detained since January in a Barcelona prison while awaiting trial for sexual assault, appealed the verdict handed down by the Madrid Administrative Court (TEAC).

Alves insisted he had made a correct declaration to Spanish tax authorities regarding his image rights income during the 2009-10 and 2010-11 campaigns while he was a Barcelona player.

The Spanish Treasury opened an investigation into Alves in 2014 for irregularities in the transfer of his income linked to image rights, which allowed him to pay less tax. In 2008, Alves transferred his image rights to the company Cedro Sports for 1.6 million euros, the same year he signed for Barça.

Cedro Sports was owned by Alves and his ex-wife and then agent Dinorah Santana Da Silva. The Catalan club paid Alves part of his salary through this company.

The Spanish tax authorities argued that profits from the exploitation of these image rights should be calculated as capital gains in accordance with corporate tax legislation.

However, Alves’ defense managed to argue that his salary was within the law, splitting 85% via an employment contract with the club and the remaining 15% for image rights charged by Cedro Sports.