Iona Napier
A NETWORK of foreign businessmen and lawyers are facing 48 years in prison for tax evasion on the Costa del Sol.
The group are to go on trial for using offshore companies to avoid paying taxes when making enormous property purchases.
Marbella lawyer Domingo Cuadra may face 12 years in prison, while Norwegian businessman Odd Reitan, number 291 on Forbes rich list and worth a cool €4.8 billion could serve 11 years.
Others involved include Idar Vollvik, a Norwegian telecommunications businessman who is very famous back in Norway having taken part in a dance reality TV show in 2014.
Marbella’s anti-corruption prosecutor is looking to impose €14 million in fines, €2.7 million in compensation and for bail to be set at a combined total of €27 million.
The case centres on firm Calvario 8 Administracion which changed its name to Cuadra Asociados, Servicios Legales, Fiscales y Contables in 2005.
Investigations suggest lawyer Cuadra, also currently under investigation in a separate tax fraud case from 2006, was fronting the operations.
Marbella lawyer and Olive Press columnist Antonio Flores said: “There is no reason, as far as owning property in Spain is concerned, to have an offshore company, a trust or similar set up.
“I have always been belligerent with offshore tax structures as their main purpose is to defraud or conceal money from the Tax Office, or from a creditor or a former spouse.”
Is there a list of those involved, how many, and if they live elsewhere is it likely they will brought back to Spain and imprisoned?
I’d like to see if the Directors of a UK owned chain of CDS estate agents operating during the boom, head office Puerto Banus are on that list as they evaded tax when they closed and left without paying many of their staff. Some went off to Thailand to start a similar operation there, a married couple who owned the business started several new businesses one of which was selling off-plan properties in London and other UK areas to Chinese investors. Believe they still own on the Golden Mile. So many Brits were scammed by their outfit, the Sunday Times did a full expose on them years ago.
Can’t quite grasp the remark that Antonio Flores said:-
Marbella lawyer and Olive Press columnist Antonio Flores said: “There is no reason, as far as owning property in Spain is concerned, to have an offshore company, a trust or similar set up”.
There must be hundreds of people owning property in Spain and not resident and possibly have an offshore company, but the difference is that if you own property in Spain and are a tax resident then tax would be liable on any interest or profit gained from that offshore company etc. Possibly the interest rate and profit gain is greater then that of Spain. As far as I know there is no law against this providing one declares all assets and shown to be legal and if tax is paid in the country where the company etc is stationed then through the double taxation system (if they have one with Spain) could be set against tax payable in Spain. Perhaps Antonio could rephrase his sentence slightly and not assume people would be guilty in some way by having an offshore company.
By the way, before I am accused of defending offshore companies, I have no offshore company, a trust or similar set ups but just an old age pensioner. Am I wrong?.