The Espargaró brothers are reported to be under investigation by the Spanish Tax authorities who are believed to be requesting payments from both MotoGP riders.
Many MotoGP riders are aware of how harsh the tax authorities can be in requests to provide documentation for homes they own outside of their home states in order to demand tax payments.
The two Espargaro brothers are the recent MotoGP stars finding themselves in this predicament. Aleix and Pol have lived in Andorra for a while, but the Spanish Revenue Agency literally knocked on their doors to get an explanation about a “fictitious” residence.
They both moved to Andorra a few years ago, along with a number of other well-known Spanish celebrities. Despite the fact that they were residing in the Principality, they might have had their fiscal residence in Spain for a while. They’ve received multiple unsuccessful notifications as it should be noted that residents of Andorra must pay taxes as well.
According to reports from Spanish newspaper El Periódico, the dispute is believed to have existed since 2018, when the Revenue Agency visited the Grands Prix in Jerez and Aragon to contact the two riders, who have consistently denied to address the issue.
The Regional Economic Administrative Court of Catalonia (TEARC) has now approved the continuation of the legal proceedings against Aleix, who vehemently defends his innocence. Aleix Espargaró has been ordered to pay €586,590 by the Court.
“It is clear that debates are created, but more moral than legal, because I am not doing anything illegal,” the Aprilia rider defended his position.
“People think not, but taxes are also paid in Andorra, I pay them here because it’s the place I live.
“I will not return to Spain. My family is safe here, something I give a lot of value to, we don’t have this feeling of tranquility in Spain.
“This country is spectacular, you can walk calmly down the street without any fear.”
The oldest of the Espargaro brothers would have to pay a total of 586,590 euros to Hacienda (the Spanish Revenue Agency) in order to be a tax resident in Spain rather than Andorra between 2014 and 2017, when the MotoGP star declared he lived in the state that is regarded as a tax haven.
The amounts in question for Pol Espargaró’s case are not made public, but his attorneys plan to take the matter to the National Court.
“The current dispute with the Revenue Agency is based on technical tax issues,” Pol Espargaro’s lawyers explained to the Spanish newspaper. “We dissociate ourselves from the position adopted by the Revenue Agency, and this is why we are already resorting to responding.”
The two Espargaro brothers are not the first riders to find themselves in this predicament. Their colleagues such as Dani Pedrosa and Jorge Lorenzo have also faced similar issues, with the latter prevailing in his legal battle against the Spanish Revenue Agency.