
[Saba Sports News] According to Brazilian media reports, the charges against Neymar and his father for alleged tax evasion have been dismissed, and they are set to be exempt from a tax penalty of 1.8 billion Brazilian Reais (approximately €28.84 million) related to Neymar’s transfer to Barcelona in 2013. In a ruling released this week, the Third Regional Federal Court overturned the 150% fine and other separate penalties, with the case reportedly lasting over a decade. The court confirmed that the payments Neymar received from Barcelona were classified as salary, not compensation as claimed by the tax authorities. Additionally, the court ruled that the income tax Neymar paid in Spain should be deducted and credited, rejecting the Treasury Department’s argument that international treaties between Brazil and Spain do not apply. The court also canceled Neymar’s image rights debt, recognizing the legal use of athletes’ image rights by corporate entities, and dismissed the claims that Neymar and his parents’ company concealed wage payments. One judge noted that the tax authority’s attempt to classify the operation as “formal abuse” or “fraud” in order to reclassify income and apply a personal income tax rate of 27.5% lacked strong supporting evidence and conflicted with relevant laws and regulations. One of the judges stated that the case should consider Neymar’s level of fame.
