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Rafael Nadal Caught in Tax Volley

Tennis Superstar Caught Creating Companies to Avoid Taxman

Everyone hates paying taxes, and even the world’s No. 2 tennis player is no exception.

Rafael Nadal, the 25-year old Spanish tennis sensation, offered a mea culpa after a Spanish website reported that the Australian Open finalist had set up several companies in an effort to lower his tax bill.

They were allegedly created in the Basque region of Spain, and a local tax rule would have given Nadal a different kind of advantage on his income tax bills. But when tax authorities in the region started investigating, Nadal tried backhanding the issue by admitting that he no benefit from creating the companies and that they had no tax debt.

Known as the “King of Clay” for his superb performance on clay, he’s also known for the litany of titles he’s won including the French and US opens.

But he’s also known for his criticism of the United Kingdom’s tax system, which led him to skip out on the Queen’s Club tournament, a warm up for Wimbledon. He said he’d lose money by playing in England due to the taxes on prize money, appearance fees and a portion of his worldwide earnings.

But you don’t have to be an international tennis superstar to be investigated by tax authorities. If you owe back tax debt to the IRS, it’s a good bet they’ll try and poke into your files and receipts. Make sure to hire a tax attorney to help you win the game, set and match against the IRS.

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