The team were presented the trophy by US President Donald Trump, who has in his time been subject to some questions over his tax affairs. And it’s the taxman, or Internal Revenue Service (IRS), who might come knocking for Spain too, because the American authority will want a share of any winnings claimed on US soil.
According to reports, the prize pot for the Spaniards for winning the final will be $50 million, around £37 million, but the team could have also generated revenue from sponsorship deals and other avenues during the course of the tournament.
Money trends website MarketWatch reports that whoever wins on the field, the IRS will be the real winners off it in terms of taxation.
Robert Raiola, director of the sports and entertainment group at the accounting and tax advisory firm PKF O’Connor Davies, told the site: “It doesn’t make a difference who wins the game. The IRS will get a piece.”
The complexities of the US tax system in relation to foreign nationals earning money in America might mean some players will be surprised when they get a demand in the post.
Rob Fagan, from KPMG in Washington, said while well-established players might have advisors who can help them navigate tax, the players who are new to the competition might “might be a little shocked”.
The amount the IRS comes after may also depend on which US state the player earned any revenue in, and if the player’s country has any pre-existing tax-break deals with American concerning athletes and earnings.
For example, according tp the IRS, the US does have a general tax treaty in place with the winners, Spain, but it does not have any agreement in place with the losers, Argentina.
Christopher Hall, also from PKF O’Connor Davies, added: “Even within the same team, there may be different tax answers for different players. You have to go through and look [at] your entire entourage.”
As the governing body of the World Cup, Fifa made itself tax-exempt in the US in 1994, but it is not known if the federations between each national team have managed to secure that status themselves.
