Hard setback for Julio Iglesias. His brother Carlos Iglesias will sit next Tuesday, October 17, in the Provincial Court of Madrid for allegedly defrauding the Treasury of 19 million in the fiscal year of 2001, by allegedly not having included in the Corporate Tax the sale of several lands in the Spanish capital by alleging that He had tax residence in Panama.
In his indictment, to which Europa Press has had access, the prosecutor requests 4 years in prison and a fine of more than 98 million euros for Carlos Iglesias de la Cueva, 78 years old and one of the singer’s best-known brothers. , since he became his manager before focusing on his work as a music producer.
There was also another accused, already deceased; The Prosecutor’s Office accuses them of having defrauded the Treasury of 19,650,232.84 euros in the 2001 fiscal year, and demands payment to the public treasury of the same defrauded amount, almost 20 million, as civil liability.
The indictment states that “the entity Rolimpa Trading Corporation was incorporated in Panama on June 3, 1984 and that in 2001 it sold in separate public deeds a series of lands it owned in Vicálvaro to two Spanish companies for an amount of 18,538. 465 and 27,739,466.07 euros, respectively, which made a total of 46,277,932.04 euros.”
These lands had been acquired by Rolimpa Trading Corporation in a public deed dated March 20, 1989 from the company Orosketa SA for a price of 100,000,000 pesetas.
The price of these operations, according to the Prosecutor’s Office, was paid by bank transfer made on the spot, with the final recipient being an account at the Continental Bank of Panama owned by Tranoceanic Capital Corp. Carlos Iglesias was authorized in said account.
All of Rolimpa’s shares belonged to the company Cid Holding Company, which, in turn, was owned by the company Ganivet Investment SA, whose owner was the same defendant who, in addition, was the representative of Rolimpa Trading Corporation until March 2. of 2001, “sharing said power until the same date with the other defendant LUIS.”
However, Carlos Iglesias, assisted by LUI S-, continued to de facto manage Rolimpa, despite “the formal revocation of such power, as he had been doing.”
The Prosecutor’s Office affirms that “in order to obtain an illicit tax benefit”, Julio Iglesias’ brother “did not present a Non-Resident Income Tax return for the company Rolimpa Trading Corporation, which declared itself a tax resident in Panama, nor a return any tax on the profits obtained in this operation”.
Furthermore, he specifies that although on February 22, 2001 he formalized a private contract to sell all of his shares in Ganivet Investment SA to the Panamanian entity Rodes Finance INC for a price of 18,500,000 dollars, “said contract did not correspond to reality”.
The representative of the Public Ministry explains that the Panamanian company had been established on February 2, 2001 by front men of the artist’s brother “with the sole purpose of simulating the transfer of ownership of the shares, which remained under the ultimate control of the accused. , who thereby intended to avoid his future tax responsibilities for the sale of the land.”
Although Carlos himself declared himself a tax resident in Panama in 2001, he has not proven, according to the Prosecutor’s Office, the reality of this fact, “spending time in Spain, where in 2001 and 2002 he had his main economic interests and greater obtaining of income resulting from the profits of this operation, so it must be considered a tax resident in our country”.
Likewise, the indictment reflects that Rolimpa Trading Corporation, domiciled for formal purposes in Panama, must be considered a tax resident in Spain “based on its place of management and having the majority of its assets in our country, therefore that it was subject to corporate tax in 2001 and not to IRNR”.
The fact is that Rolimpa Trading Corporation was a company of mere holding of assets with a single partner with a “transparent company” treatment, so that Carlos, as de facto manager of Rolimpa and partner and ultimate beneficiary of the sale price , “in addition to having declared the capital gain from the sale of the land in Rolimpa’s 2001 Corporate Income Tax, it should have declared in its 2002 personal income tax the tax base of Rolimpa’s 2001 IS, later deducting the fee paid. for said Corporate Tax”.
As a consequence of all this, and taking into account that the cooperatives that purchased the land retained 5% of the sale price in response to the fact that Rolimpa declared itself a non-resident at the time of the sale to later deposit it in the Public Treasury, The amount defrauded by the IS amounts to 19,650,232.84 euros.
In reality, the amount not paid would amount to 19,439,382.27 euros, “although to the extent that it is appropriate to deduct from this amount the amount paid in the 2001 Corporate Tax, once the deduction has been made, no harm would be caused to the Public Treasury for this fact”.