Tag: Promotion

Spain vs Narcea Producciones y Promociones S.L., January 2022, Tribunal Superior, Case No STSJ M 122/2022 - ECLI:ES:TSJM:2022:122

Spain vs Narcea Producciones y Promociones S.L., January 2022, Tribunal Superior, Case No STSJ M 122/2022 – ECLI:ES:TSJM:2022:122

Narcea Producciones y Promociones, S.L. (Narcea S.L.) had as shareholders Mr. Emiliano and Mrs. Filomena and their son, Mr. Ismael, a professional footballer, who had an employment relationship with the football club Hércules CF SAD of Alicante. Narcea S.L. purportedly managed the economic rights, the representation fees and the image and TV rights of Mr. Ismael. In relation to the image and TV rights of Mr. Ismael, the tax authorities considered that there had been a related party transaction between Narcea S.L. and Mr. Ismael where these rights had been transferred. In consideration for the transfer, the football club Hercules had paid 40,000 euros in 2010 and 80,000 euros in 2011 to Narcea S.L. According to the tax authorities these payments should instead have been made directly to Mr. Ismael without the intermediation of Narcea S.L. Furthermore, the arrangement had resulted in a fiscal advantage since the CIT rate was much lower than the personal income tax rate. The tax ... Read more