Andres Iniesta has reportedly paid back extra taxes owed in Japan for failing to declare some of his income but claimed he also declared his profits in Spain.
Spanish World Cup winner Iniesta, who has a five-year contract with Japan’s Vissel Kobe until 2023, failed to register around $5.7 million in income in 2018, according to national broadcaster NHK and other media. Foreign players in Japan are classified as resident or non-resident for tax purposes.
If they have a contract for less than a year and are not accompanied by family members, they are considered non-residents and pay less tax than residents, according to sources citing the National Tax Agency.
The Osaka Regional Tax Bureau determined that Iniesta was a resident in 2018, as he lived with his family members under a multi-year contract. As a result, he received an additional tax demand of about $3.83 million.
“In fiscal year 2018, I reported my income from around the world to the Spanish tax authorities,” Iniesta said in a statement released through his management company and reported by NHK and other media.
“The Japanese tax authorities opened an investigation focusing on my residency status under the tax rules and concluded that I was a resident (in Japan) during part of 2018,” he said.
“Therefore, the income during this period is subject to double taxation,” he said, adding that he has ordered the repayment of excess tax payments in accordance with the double taxation agreement between the two countries.
The management company could not immediately confirm the reports.
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