Bullfighting businessman on tax fraud charges

The trial will begin today, Thursday, in the Fifth Section of the Madrid Court against Tomás Entero Martín, a bullfighting businessman, who, along with his wife, are accused of defrauding the Treasury.

The wife has been implicated as she is accused of being involved in separating their assets when they found out they were being investigated.

Facing the trial, the Prosecutor’s Office requests a prison sentence of 8 years for the person in charge of the company Tomás Entero SL for having stopped entering the public coffers during the fiscal years of 2006 and 2007 a total of 548,690 euro for Corporation Tax, and another 257,910 euro for Value Added Tax (IVA) in 2007.

He also asks for him to pay three fines totalling 1.6 million euro and to compensate the Treasury with the defrauded amount.

For his wife, the Prosecutor requests two years in prison.

The prosecutor’s brief states that in 2006 the company Tomás Entero SL had the defendant as sole administrator and one hundred percent shareholder in the company’s share capital and that, furthermore, he was the only authorised account holder.

Thus, that year, “with the intention of obtaining illegal tax savings”, he filed the corporate tax return including invoices documenting services that had not actually been provided as deductible expenses “and omitted to include the corresponding net turnover for sale of locations”.

Likewise, in the following fiscal year the company presented the corporate tax and IVA declaration, “including in the first as an expense an invoice that documented a service not provided” and omitting to declare the turnover corresponding to box office income.

In April 2010, the person being investigated was notified of the initiation of the inspection proceedings in relation to corporate tax for the financial year 2006 and 2007 and IVA for 2007.

The regularisation proposal made estimated that the defrauded quota in relation to corporation tax was 790,524.34 in the 2006 financial year and 467,968.31 euro in 2007; IVA for 2007 amounted to 367,329.62 euro.

In response to these facts, a complaint was filed by the Public Prosecutor against the accused and against his company as subsidiary civil liability for three crimes against the Public Treasury in relation to the 2006 and 2007 corporation tax and 2007 IVA.

In 2012, a court in San Lorenzo del Escorial (Madrid) initiated preliminary proceedings, after which the defendant provided documentation to prove expenses for the years 2006 and 2007 related to payments to bullfighters and others derived from the celebration of bullfighting festivities.

But the Prosecutor’s Office warns that these documents “do not coincide in concept, amount or issuer of the invoice or receipt with the invoices provided in the self-assessments of corporate tax.”

After presenting new documents that, in some cases, appear in duplicate or triplicate expenses, the Tax Agency carried out a new settlement in which it concluded that what was defrauded exceeded 800,000 euro.

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