Friday, November 6, 2009

Tax Increases, Club Spain Sempat Planning Strike


The tax increase for foreign players to the Spanish government planned loud protests from the Spanish League faction (LFP). They even reportedly had intended to strike action to reject the plan.

As previously reported, the Spanish government was considering raising taxes for foreign citizens to approach 20 percent. Foreign citizens who have income of more than 600 thousand euros will be taxed 43 percent, like any other Spanish citizen. Whereas, before the tax levy for foreign players only 24 percent.

Tax rules that began in 2004 and with the intention of exciting players move to world-class La Liga. Since joining together with David Beckham to Real Madrid, the rules are known as the Beckham Law (Law Beckham).

However, that rule does not apply to expensive players like Cristiano Ronaldo and Kaka who has been recorded as masters Madrid since the start of the season. The new regulations will apply to players who sign contracts beginning January 1 next.

Nevertheless, La Liga officials hope the government will revise the regulation. 42 club representatives, from division one and two, reportedly had a meeting to discuss the steps they would take regarding the legislation.

Reuters launch, Saturday (7/11/2009), they finally decided to postpone the strike plan. Instead, they would form a commission to discuss the position of LFP and the Spanish government. Involves a number of them as president Florentino Perez clubs (Real Madrid), Jose Maria Del Nido (Sevilla), Xavier Salvado (Gimnastic Tarragona), and Francisco Rubio (Numancia).

"We're not happy with the steps taken by the government. We have formed a committee to discuss this issue and some other things about Spanish football and the government," said president Jose Luis Astiazaran LFP as quoted Goal.

"We want the government to understand our thinking. We will show that football creates a lot of revenue and profits for this country," he continued.

"We have decided not to take extreme decisions. 19 November, we will see what progress has been achieved before decisions are made. We decided to act constructively and conduct negotiations with the government," Astiazaran closed.

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