The coach of Portugal, Fernando Santos, lost his dispute against the Portuguese treasury in court and has to pay income tax on the salary he receives as a coach, in addition to the fact that a debt of approximately 4 million euros will not be paid.
Santos, 67, is trying to get the Portuguese Justice to approve the contract signed by the company he owns with the Portuguese Football Federation (FPF), which paid him for his role as a coach.
In addition, he wants them to return a loan he paid to the Treasury of Portugal in 2016 and 2017, which the authorities demanded, considering that the way in which he was paid was illegitimate.
The company that caused the disagreement
At issue is the manner in which Santos received his coach salary, as the FPF paid Femacosa, a company owned by the coach, which then distributed the amount between the coach himself and his technical team.
In the decision issued this Monday, the Portuguese Administrative Arbitration Center (CAAD) considered that Fernando Santos should pay income tax for the individual compensation (similar to the Spanish IRFP) as a national coach, and not corporate tax through that signature .
The process started in May
The process began last May, when the newspaper Expresso revealed that the Portuguese treasury considered that this method seeks to reduce the final amount to be paid in taxes, because if Santos received it himself, he would have gone to another step and still have to pay..
The media added that the authorities accused the company of being fictitious and that the coach barely declared the income tax equivalent to a salary of 70,000 euros per year, although he received 10 million from the FPF.
For this reason, he asked the coach for the payment of 4.5 million euros in arrears for the period between 2016 and 2017.
The debt was paid, but Santos appealed the decision, which has now been denied.
Fernando Santos, “hurt and hurt”
In reaction to this proposal, Santos denied in a statement that his company is fictitious, recalling that it was created even before the technical mandate of “quinas” was assumed in 2014 and assured that this accusation “has leave him hurt and deeply hurt”.
Regarding the amount demanded by the Treasury, “the additional tax required has been paid, so I have no debt and have never owed the Tax Authority,” said Fernando Santos.
The Federation supports the technician
On the other hand, the Portuguese Federation, in the same statement, defended the “irreproachable conduct from the ethical, moral and sports point of view” of Fernando Santos and affirmed that this method of paying the payroll was his option to “avoid the constraints if and when there are layoffs.
Fernando Santos has been the national coach since 2014, managing to win Euro 2016 in France and the Nations League in 2018, Portugal’s first major trophies.
Source: La Verdad
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