A Spanish regional prosecutor on Tuesday filed an official complaint in court seeking the prosecution of former Real Madrid head coach Jose Mourinho on suspicion he defrauded Spain's exchequer of 3.3 million euros ($3,686,552) of income derived from his image rights.
The case was triggered after Spain's tax office issued a report to the Public Prosecutor's Office stating that Mourinho had, prior to Sept. 17, 2004, signed a contract granting his image rights to British Virgin Islands-based company Kooper Services S.A.
"The corporate structures were used by the person summoned to obscure benefits derived from his image rights", the prosecutor said.
According to Madrid's regional prosecutor, Mourinho is under suspicion of having committed two crimes against the Public Treasury in relation to personal income tax in 2011 and 2012, when he was coaching Real Madrid.
The tax he is under suspicion of having evaded amounts to 3,304,670 euros (1,611,537 euros in 2011 and 1,693,133 euros in 2012), according to documents held in the Madrid branch of the Public Prosecutor's Office.
Mourinho signed a work contract with Real Madrid on March 31, 2010, and moved his residence to Madrid, thus acquiring a tax status as a fiscal resident in Spain.
However, between 2011 and 2012 and "with a view to obtaining an illicit benefit," he filed tax returns in a timely manner but without declaring revenues derived from image rights.
On July 23, 2014, Spain's tax office informed Mourinho that it was to investigate his personal income tax returns for 2010-2012 and his non-resident year, 2013.
It also said that it provided Mourinho with certificates that had been issued by Global Directors Limited in which reference was made to the ownership of Kooper.
Spain's tax authority had detected that Mourinho had not declared income from his image rights in 2011 and 2012.
It was at this point, on July 3, 2015, that the Portuguese coach signed an act of conformity in which he acknowledged a shortfall in his tax declaration relating to his image rights and agreed to pay a penalty of 1.14 million euros.
However, tax inspectors discovered that Kooper Services was created after the agreement, allegedly with a view to concealing image rights income.
Tax inspectors said Mourinho owns 100 percent of Kooper through Kaitaia Trust, based in New Zealand, with himself as founder and beneficiary along with his wife and children.
Mourinho was yet to comment.