Italy Launches $13 Million Soccer Tax Fraud Probe--Update

By Giovanni Legorano 

MILAN--Prosecutors in the Italian city of Naples said they are carrying out a countrywide investigation into an alleged EUR12 million ($13 million) tax evasion scandal involving soccer players, their agents and a number of soccer clubs.

In a statement, prosecutors said police early on Tuesday raided the offices and houses of 58 people allegedly involved in the scandal. The police were looking for cash, real estate and financial assets in the hope of reclaiming the total sum allegedly evaded, the statement said.

The statement didn't mention any of the people or teams involved, but a person familiar with the probe said Adriano Galliani, chief executive of AC Milan, Aurelio De Laurentiis, head of SSC Napoli and Claudio Lotito, president of SS Lazio, are under investigation.

Lawyers for Mr. Galliani confirmed that he had been notified about the investigation and said they expect the probe would be "duly shelved." A spokesperson for AC Milan had no further comment.

Napoli and Lazio didn't immediately respond to emails and calls seeking comment, but a spokesman for Lazio told Reuters news agency that he wasn't aware of the probe.

Messrs. De Laurentiis and Lotito nor their lawyers could be reached for comment.

Prosecutors say the tax evasion was perpetrated when players were traded between clubs. They allege that agents charged false invoices to soccer clubs, claiming to be acting in the interests of those clubs rather than the players. Those owners were able to deduct the invoiced amounts as costs from their taxable revenue.

The money paid to the agents was then allegedly passed to the players as a tax free fringe benefit.

Prosecutors also allege that some Argentine agents have evaded taxes by moving their income to tax havens and not declaring them in Italy or Argentina.

The probe is part of a wider investigation into a "deep-rooted system intended to evade taxes, put in place by 35 football clubs in Serie A and Serie B along with more than 100 other individuals, including players and their agents," Naples prosecutor Vincenzo Piscitelli said.

Write to Giovanni Legorano at [e-mail]

(END) Dow Jones Newswires

January 26, 2016 12:41 ET (17:41 GMT)

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