Rédaction Africa Links 24 with Guardian Nigeria
Published on 2024-03-24 08:44:36
Andres Iniesta recently admitted to paying additional taxes in Japan for failing to declare part of his income, but clarified that he had indeed reported the earnings in Spain. The Spanish World Cup winner had spent five years playing for Vissel Kobe in Japan until 2023, when the issue with his taxes arose. Reports from public broadcaster NHK and other media outlets revealed that Iniesta had neglected to declare around 860 million yen ($5.7 million) in income for the year 2018.
According to Japanese tax authorities, foreign players who are on contracts lasting less than a year and are not accompanied by their family members are classified as non-residents. As a result, they are subject to paying less tax than residents. However, the Osaka regional tax bureau determined that Iniesta should be considered a resident for the year 2018 due to his living arrangements with his family and his multi-year contract, resulting in an additional tax bill of approximately 580 million yen.
In response to these findings, Iniesta released a statement through his management company, asserting that he had fully disclosed his global income to Spanish tax authorities for the fiscal year 2018. The Japanese tax authorities initiated an investigation focusing on his residency status under tax laws and concluded that he was a resident in Japan during part of 2018. Subsequently, Iniesta paid the additional tax amount as demanded.
In the statement, Iniesta mentioned that this situation has led to his income being subjected to double taxation. He stated that he has requested a refund for the excess tax payment based on the agreement on double taxation between Spain and Japan. The Osaka regional taxation bureau, however, declined to offer any comments on the matter when contacted by the media.
Recent reports have also highlighted similar tax discrepancies involving other foreign players in Japan. South Korean goalkeeper Kim Jin-hyeon and Brazilian forward Patric were cited for failing to accurately report their income, leading to back tax assessments. Kim has been instructed to pay 220 million yen in back taxes, while Patric owes 210 million yen. Cerezo Osaka, Kim’s club, declined to comment on the issue citing privacy concerns. Gamba Osaka, Patric’s former club and current employer Nagoya Grampus, stated that they are addressing the matter in accordance with the guidance of the tax authorities and the J-League.
