The case of Manuel Luís Goucha has once again put the focus on the way in which some income is declared and taxed in Portugal, especially when public figures and business structures are involved. The recent decision ruled in favor of the Tax and Customs Authority in a process with a significant financial impact.
According to , the presenter lost a 2019 IRS-related dispute, following a decision by the Administrative Arbitration Center. At issue is an additional settlement of more than one million euros, including tax and compensatory interest.
According to the same source, the case is not isolated and is part of a broader trend of tax authorities’ scrutiny of certain tax structures.
The process originated from the way in which Manuel Luís Goucha’s income was classified. The presenter would have created a company to which he transferred his image rights, starting to provide services through this entity.
In practice, income was taxed under IRC, through the company, instead of being directly subject to the IRS as individual income. According to Jornal de Negócios, cited by the same publication, the Tax Authority considered that this structure did not correspond to economic reality.
Tax authorities applied anti-abuse clause
In view of this conclusion, the General Anti-Abuse Clause was activated, a legal mechanism that allows the Tax Authority to disregard operations whose main objective is to reduce the tax burden.
According to the legal framework, when it is concluded that a structure is not genuine, income is taxed as if that structure did not exist. This is what happened in this case, with the Tax Authorities understanding that the amounts should be taxed by IR and not by IRPJ.
Difference between IRS and IRC is the basis of the problem
One of the central points of this type of situation is related to the difference between IRS and IRC rates. While the IRS can achieve higher rates, the IRC has a significantly lower rate. This difference may lead some taxpayers to turn to companies to manage income. However, when these structures are considered artificial, they can be challenged.
According to Notícias ao Minuto, this type of analysis has intensified by the Tax Authority.
There are other cases under analysis
Goucha’s case is not unique. According to Correio da Manhã, cited by the same source, other public figures would also have been the target of scrutiny for similar situations.
Among the names mentioned are Cristina Ferreira and Fernando Santos, in processes involving business structures used to manage income. Although the cases are distinct, they share similar characteristics in the tax framework.
Decision may still be challenged
Despite the decision of the Administrative Arbitration Center, the process may not yet be completely over. There is the possibility of appealing to higher courts. Each situation depends on the concrete analysis of the facts and the interpretation of the applicable tax legislation.
Notícias explains to Minuto that the reinforcement of supervision in this type of structure must continue, in an attempt to guarantee greater alignment between legal form and economic reality.
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