Chinese lawyer accuses Camacho team of tax evasion

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Chinese lawyer accuses Camacho team of tax evasion

(Xinhua) 11:26, August 09, 2013

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A lawyer has warned the Chinese authorities of possible tax evasion by former China soccer coach Jose Antonio Camacho.

Xiong Zhi, a lawyer from Beijing Shang'an Law Firm, asked the State Administration of Taxation (SAT) to pay attention to Camacho and his team's failure to pay income taxes during the Spaniard's two-year rein as China head coach.

"I was not able to get hold of the contract terms between Camacho and the Chinese Football Association (CFA) due to its confidentiality, but I noticed his team had earned huge sums of after-tax salary," wrote Xiong in a public letter on Thursday.

"Reports said the CFA now refused to pay taxes for Camacho and his team, which means the money has yet to go into the public purse," Xiong said. "I ask the SAT to look into the matter and punish (them) if there is any violation."

The letter was received by SAT head Wang Jun, Legal Daily newspaper said on Friday.

Xiong estimated the Spaniard and his team had pocketed over 110 million yuan (about 18 million U.S. dollars) since they took over the Chinese team in October 2011.

According to Xiong, no matter what arrangements the CFA and Camacho's team have made for tax payment, Camacho and his entourage are obligated to pay taxes.

"According to the Chinese tax law, Camacho and his assistants should report and pay taxes for their income obtained within Chinese border," said Xiong.

The CFA and former Spain and Real Madrid coach are in a heated contract row and the two sides are ready to face each other in arbitration.

Camacho, with more than one year left on his contract, stepped down following a humiliating 5-1 home defeat to a second-string Thailand side on June 15 and he requested the CFA to pay compensation.

Negotiations broke down in July and reports said the CFA will not pay the 180 million yuan taxes for Camacho as well as severance he requested.

During Camacho's stay, the Chinese team kept a downhill sliding, dropping from world number 71 to an all-time low 109 in March this year with a record of seven wins and 11 defeats in 20 games.