Manchester City’s £12m Mancini tax case: Everything to know

Manchester City have been accused of avoiding around £12m in income tax and National Insurance in relation to Roberto Mancini’s salary, according to new claims released today.

According to a report by Tax Policy Associate claims, City could face a tax bill and penalty of up to £24m along with renewed scrutiny from investigators over payments made to Mancini made through an independent contractor agreement involving the Abu Dhabi-based Al Jazira Sports and Cultural Club.

The commission found that the club used a concealed financing arrangement under which the Abu Dhabi United Group helped to fund sponsorship payments that were recorded as revenue. Principally, Mancini himself could be liable to pay the tax but the report underlined that in most cases HMRC seeks to recover money from the employer.

The report also hints at criminal investigation into whether tax offenses or false financial irregularities occurred.

City maintains they are cleared of the accusations made by the Premier League and have irrefutable documentation to support its position.

The report further stated, “We should add that we are not suggesting that any specific individuals at Manchester City, or indeed Mr Mancini, committed an offence,”

“We are saying that there appears to be good grounds for a criminal investigation of the circumstances under which a sham arrangement was put in place and tax was not paid when it should have been.”

Premier League signifies a massive amount of evidence that is impossible to deny its position and this is said to automatically grant blanket immunity from any criminal investigation.