The Administrative Arbitration Center (CAAD) has rejected Fernando Santos’ request regarding the tax framework of his contract with the Portuguese Football Federation (FPF), the coach and FPF confirmed to Lusa in a statement on Monday.
Fernando Santos asked for clarification on the tax regime applied to the contract his company had signed with the FPF in 2014 and on which IRC and IRS had been paid, with a view to refunding the amounts already paid as IRS for 2016 and 2017, those are about four million euros.
It should be noted that it was the national coach’s company (FEMACOSA) and not the one who had a contract with the FPF, so it was in the account of the company where the coach’s remuneration was deposited. However, the courts are of the opinion that the wages should have been received as income from employment and not through your company. Fernando Santos’ income should therefore be subject to payment from IRS and not from IRC.
In a statement, the selector summarizes the CAAD’s decision regarding the tax framework of this contractual relationship, noting that all income has been declared.
“Of course during the sessions at CAAD it was shown that my company already existed when I was training in Greece, so it is not fictitious nor was it created for the purpose of becoming a national coach”said Fernando Santos, assuming he was relieved by the clarification announced this Monday: “The very existence of this doubt – thankfully obsolete – left me hurt and deeply offended. It would be contrary to all the principles by which I have always lived and guided my life.”
The 67-year-old coach believes that “it was clear” that he did not try, nor did the FPF, “create a scheme whereby information is withheld or the tax authorities (AT) or any other authority is evaded”.
“My company (FEMACOSA) and I have fully and punctually declared all payments made and the income earned from them to AT. Given the interpretation that AT followed, the requested addition (IRS) was paid immediately, so I must not and never I was AT owe a penny,” done with the technician.
The FPF reiterated its support for Fernando Santos on Monday and praised the coach’s conduct.
“Since being invited to take up the position of national coach, Fernando Santos has always behaved impeccably from an ethical, moral and sporting point of view. The existence of one contract for the services of the entire national technical team was an option of the FPF, with the aim of avoiding restrictions if and when there were terminations (as had occurred with other selectors and their respective technical teams)”explained a federal source.
Given this interpretation of the CAAD, both Fernando Santos and the FPF reserve the right to “take possible legal action that may be justified”.
Source: DN
