Jorge Lorenzo scores an important victory. But this time it’s not a success on the track, but in the courtroom.
The five-time world champion, who retired from racing at the end of the 2019 season, manages to win the over-million dollar lawsuit against the Spanish tax authorities for the second time. In 2021 he won his first legal battle against the tax authorities who demanded 35 million from the pilot for the non-payment of Irpef. The Mallorcan driver’s lawyers managed to prove that Jorge Lorenzo had lived in Lugano (Switzerland) from 2013 to 2015.
Consequently, the Central Economic Administrative Court (TEAC) has reached an agreement with the former pilot of the MotoGP and he rejected the dispute he had opened with the exchequer. But the Spanish Revenue Agency returned to the attack and asked for 11.3 million euros (3.6 as a penalty) regarding the earnings collected in 2016, once again because of non-payment of personal income tax.
Jorge Lorenzo beats the tax authorities 2-0
The tax authorities tried to demonstrate that the sample, currently a TV commentator for Dazn as well as an investor in the real estate sector, had spent more than 183 days in Spanish territory during 2016, without however advancing exhaustive evidence. However, having not reached the six-month limit of stay in Spanish territory, or at least it was not possible to prove it, the Treasury had to make an about-face.
Then the treasury moved differently, focusing on the four Grands Prix that Jorge Lorenzo raced in Spain (Aragon, Jerez, Catalunya and Valencia) to try to demonstrate that the Balearic rider had carried out an economic activity in Spain, demanding the collection of taxes on part of the salary he received from Yamaha, in addition to the derived earnings from image rights during 2016. A sum equal to 4/18 of the annual income paid by the Japanese team in that year.
However, for the champion’s lawyers it was equally easy to demonstrate that the Grands Prix held in Spain are not decided by the driver, but by the organizers of the championship, the Sleeptherefore the taxpayer has not carried out “voluntary and intentional action on the part of the taxpayer“. Consequently the Regional Economic Administrative Court of Catalonia agreed with Jorge Lorenzo’s lawyers, confirming that the Spanish Treasury’s request is “inconsistent” And “likely to cause significant inconsistencies“. Then the decision to cancel the Irpef assessment relating to 2016, with the five-time champion who will not have to pay the 11.3 million euros requested by the tax authorities.
