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ECONOMY | 22-12-2021 12:32

Carlos Tevez loses legal bid to avoid paying Argentina’s wealth tax

Court rejects injunction filed by ex-Boca Juniors striker Carlos Tevez seeking to exclude him from paying Peronist government’s wealth tax on large fortunes.

A court in Argentina has rejected an injunction filed by a legal team representing footballer Carlos Tevez challenging the government’s so-called ‘wealth tax’ on large fortunes.

Federal Administrative Court Number 5 on Tuesday rejected the ex-Boca Juniors striker’s bid to avoid paying the levy. A law passed by the Senate in December 2020 approved the so-called "solidarity contribution" by Argentines whose assets exceed 200 million pesos (about US$2.1 million). The levy varies depending on the amount, ranging from 2 to 3.5 percent, and where the assets are held.

The ex-Albiceleste star’s legal team had argued that the "tax on large fortunes" is confiscatory, highlighting that his contribution represented 200.4 percent of his annual income in 2020. 

In its ruling, the court pointed out that Law 27.605, promoted by lower house national deputy Máximo Kirchner, "represents the collection of resources aimed at satisfying public needs, particularly in the context of the current health and economic crisis" due to the coronavirus pandemic.

The bill presented by the head of the Frente de Todos caucus in the Chamber of Deputies "with the aim of mitigating the effects of the coronavirus pandemic" was designed to raise around 300 billion pesos to be used for health and production plans. 

According to the government, around 247 billion pesos have been collected to date, made up of obligatory contributions by more than 10,000 taxpayers. Economy Minister Martín Guzmán said this week that the national government has allocated a total of 180 billion pesos to date.

The court ruling states that the Boca legend must comply with the rules established by law and “liquidate and pay the aforementioned tax for all his assets in the country and abroad."

Tevez, one of Argentina’s most successful players,  was born in Fuerte Apache, an impoverished neighbourhood in the metropolitan area of Buenos Aires. In 2019, Netflix released the series, El Apache, a historical fiction account of his life.

He started playing as a child in the lower ranks of Boca Juniors, but his ability catapulted him to Brazil and then to European football, where he played for almost 10 years and made a fortune. Tevez notched up 29 international and national titles with teams including Corinthians, West Ham United, Manchester United, Manchester City and Juventus.

 

– TIMES/NA/PERFIL/BLOOMBERG

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