Why Neymar is faced with judicial battles over Barcelona bonus

Neymar is being investigated by the Spanish tax authorities because of a bonus he received for renewing his Barcelona contract shortly before leaving the club for Paris Saint-Germain.

Spanish newspaper El Mundo report the Spanish tax office have asked the Barcelona Labour Court for all the documentation involved in the case in which Neymar and the club are trying to settle their outstanding debts.

El Mundo report the tax authorities are investigating whether the player’s renewal with Barcelona and his subsequent world-record transfer to PSG were taxed properly in Spain.

Reports state the intervention of the tax authorities in an ongoing judicial procedure is very rare and has been ordered to determine if Neymar paid the correct taxes on his €64.4million (£55.3m) bonus and on his €222m (£190m) transfer to PSG.

Neymar lived in Spain for over 183 days in 2017 and therefore has to declare all his income from both Barcelona and PSG as a tax resident in the country.

Barcelona reportedly made the first payment of €23.7m (£20.4m) to Neymar for his renewal bonus and the Brazilian’s subsequent transfer left the rest of the bonus outstanding.

The Catalan club refused to pay the second amount and are now asking for the return of the entire bonus with interest, as well as a fine for damages which total around €75m (£64m), according to El Mundo.

Neymar is asking for the rest of his bonus to be paid with interest. The trial to determine the case will be held on March 21

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