Iniesta Clarifies Tax Troubles in Japan
Japan is accusing Spanish footballer Andrés Iniesta of not coughing up a hefty sum during his time in the Land of the Rising Sun.
Japanese tax authorities are hounding Spanish footballer Andrés Iniesta for ¥580 million (about €3.5 million or $3.7 million) he didn't declare properly during his stay in the country, as reported by Japanese media outlets this Friday. Iniesta is among three foreign footballers who played for Japanese teams and are being dunned various amounts by the Japanese Tax Agency for not toeing the line on their tax obligations, resulting in a total undeclared sum of ¥2.1 billion (€12.7 million or $13.86 million), NHK state broadcaster reported.
According to unspecified sources cited by NHK, the Osaka Regional Tax Office, which covers the city of Kobe, has determined that Iniesta didn't declare around ¥860 million (€5.2 million or $5.6 million) for his contractual fees with Vissel Kobe, where he belonged between July 2018 and the same month last year.
Japanese authorities reckon that Iniesta, 39, was, for tax purposes, a resident of Japan during that period as he was settled in Kobe with his family, where he served as a cultural ambassador.
Consequently, the Japanese Tax Agency is asking the footballer, who currently plays for Emirates Club, to fork over ¥580 million (about $3,828,000) including a penalty for accumulated tax arrears, according to NHK.
The Japanese Tax Agency has concluded that neither Iniesta nor the other two foreign players properly filed their respective tax returns during a certain period despite residing in Japan.
The other two footballers are 36-year-old South Korean Kim Jin-hyeon, goalkeeper for Cereza Osaka, who allegedly didn't declare ¥700 million (€4.2 million or $4.6 million), and Brazilian forward Anderson Patric
Aguiar Oliveira, "Patric" (36), currently playing for Nagoya Grampus, who allegedly didn't declare around ¥600 million (€3.6 million or $3.9 million).
Similarly, Andrés Iniesta stated on Friday that he is currently engaged in an "amicable procedure" with Japanese tax authorities in which he is requesting a refund for the "excess taxes" he paid in 2018.
Japanese media reported today that the country's tax authority is demanding ¥580 million (about €3.5 million) from Iniesta for not properly declaring his income during his stay in the country.
In a statement sent to EFE from Ras Al Khaimah, United Arab Emirates, where Iniesta now plays for Emirates Club, he pointed out that the "underlying debate" of the issue revolves around his tax residence in 2018. He recalled that he changed his tax residence to Japan in the second half of the year after signing with Vissel Kobe.
"In the year 2018, I filed a tax return in Spain, for worldwide income, in accordance with the internal regulations in force. In 2021 and 2022, the Japanese tax authority conducted an inspection focused on the discussion about my tax residence, concluding that I was a Japanese tax resident for part of 2018. The debt from this inspection was duly settled," Iniesta noted.
The player believes that "the income for that period has clearly suffered from burdensome double taxation," so he requested "the initiation of the so-called 'amicable procedure' provided for in the Double Taxation Convention between Spain and Japan."
"This procedure is currently underway, and we await its prompt resolution according to the agreement reached by both states so that the excess taxes paid can be refunded to me," he added.
