Cuatrecasas advises Van Gaal on lawsuit against tax authorities to recover part of tax on compensation received from FC Barcelona
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SubscribeCuatrecasas has advised Louis van Gaal on the appeal filed before the Spanish Court of Appeals against the tax authorities, which was recently upheld, concerning the tax treatment of the compensation he received following the termination of his contract with Football Club Barcelona in 2003. At the time, the club applied and paid a tax withholding exceeding €2 million.
With the firm’s advice, Van Gaal sought the reimbursement of a significant portion of that withholding, arguing that the compensation should benefit from the 40% tax reduction applicable to irregular employment income.
After a lengthy court battle, the Court of Appeals upheld his claims. The judgment orders the tax authorities to pay costs and recognizes the former coach’s right to recover part of the withholding made by the club. Once the judgment becomes final and is enforced, the tax authorities will have to refund the amounts unduly collected, together with the corresponding late-payment interest, which could amount to twice the principal due to the time elapsed since payment.
Van Gaal’s legal defense was led by lawyers Jaume Bonet and Daniel Cuyás, from the Cuatrecasas Tax Litigation Group.
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