He Supreme court has confirmed the sentence of seven years in prison that the Provincial Court of Madrid imposed on Teresa Rivero, widow of the deceased businessman José María Ruiz-Mateos, for 8 million euros tax offense from Rayo Vallecano in 2009 and 2010, when she was chairing the club.
In a ruling, the high court also confirms the same sentence imposed on the former club member Jesús Fraile, while lower the fine and the compensation that the Lightning must face, although it maintains its subsidiary civil liability for 4 million euros of money defrauded.
The Hearing of Madrid sentenced them on July 16, 2018 to this penalty for four crimes against the Public Treasury in relation to VAT and personal income tax of the entity for the years 2009 and 2010, considering that in both years and for said taxes defrauded a total of 8.4 million euros.
The penalty of fine for each of them for a total of 16.4 million euros, and will also have to jointly compensate the Treasury in the amount defrauded of 8.4 million.
The Supreme has completely dismissed the resources of Rivero and Fraile, who are sentenced to two years in prison for each of the two crimes related to income tax of 2009 and 2010, and another two years for the one related to the VAT of 2009, and one more year for the VAT of 2010. In total, seven years in jail for each.
The high court yes partially estimates the resource of the club Rayo Vallecano, whom the Madrid Court convicted of two crimes against the Public Treasury, one in relation to personal income tax for 2010 and another with VAT for the same year, in the first case to the payment of a fine of one million euros and in the second to another of 97,276 euros.
He was also sentenced to jointly indemnify the Treasury with Rivero and Fraile for four million euros for the 2010 personal income tax, and with 389,000 euros for the VAT of the same year.
The ruling of the Supreme Court, of which the magistrate Eduardo de Porres has been a speaker, partially agrees with the club by highlighting that it was not appropriate to demand criminal responsibility from the entity for the events that occurred before the entry into force of the law that established the criminal responsibility of legal persons, which took place on December 23, 2010.
For this reason, it partially revokes the judgment of the Hearing on this point and acquits the commercial company Rayo Vallecano SAD of the crime of VAT fraud corresponding to 2010, since it was not established that in the fourth quarter of that year the tax avoidance exceeded 120,000 euros.
However, the Supreme Court establishes that it does proceed to condemn the Ray for avoidance of personal income tax during the fourth quarter of 2010, and indicates that since the amount evaded in said period does not appear, the figure must be specified in the execution of the judgment by the Madrid Court.
Therefore, the club is condemned by a crime against the Public Treasury in relation to the payment of personal income tax during the fourth quarter of 2010 to the penalty of a fine of one quarter of the amount that is set as defrauded in that quarter.
Likewise, it will have to compensate jointly and severally with the other sentenced to the Public Treasury to pay as civil liability the entire amount defrauded during the fourth quarter of 2010.
In addition, the club is sentenced to loss of the possibility of obtaining subsidies or public aid and the right to enjoy the benefits or tax incentives or Social Security during the period of nine months.
The Supreme Court maintains the rest of the pronouncements of the Court’s ruling, which included the subsidiary civil liability of the club with respect to the compensation related to VAT and personal income tax for 2009 that Rivero and Fraile must pay, a total of 4 million euros.