Issue link: https://maltatoday.uberflip.com/i/1382687
14 maltatoday | SUNDAY • 13 JUNE 2021 NEWS NICOLE MEILAK INTERNATIONAL football super-agent Mino Raiola has come under fire after an Italian investigative TV show accused him of using his Malta-based company as a façade for favour- able tax rates. Rai TV's Report discussed Raiola's company Three Sports Business, with one journalist travelling to Malta to the com- pany's registered address in a bid to determine the existence of the company beyond its tax residence in Malta. Report claimed Raiola uses Three Sports Business Ltd as a "phantom company" to avoid paying taxes to Italian author- ities. Widely regarded as one of the most powerful men in football, Raiola represented the likes of Zlatan Ibrahimović and Mario Balotelli, and was the master- mind behind the world record transfer of Paul Pogba to Man- chester United back in 2016, having made a reported €25 million from the transfer alone. The episode gave its custom- ary slap on the wrist to Malta's taxation system, which allows foreign companies to claim up to 85% in rebates on the 35% tax rate they paid on revenues booked in Malta. In an anony- mous interview with a finan- cial consultant, the reporter explains that so long as Three Sports Business has offices in Malta, Raiola's business model is fair game. The Raiola firm is established at the corporate services firm Credence in Ta' Xbiex, which in 2017 was at the centre of controversy after the Malta- Files collaboration revealed its involvement in Turkish Presi- dent Tayyip Erdoğan's family's offshore network. The firm also provided cor- porate services to Russian bil- lionaire Oleg Boyko's fast loan company, helping it avoid mil- lions in tax by transferring the profits to Malta. Credence acted as Raiola's company service provider when the company was still in forma- tion. In May 2019, FIFA suspended Raiola and Three Sports Busi- ness from all transfer activity worldwide. Reasons for the ban were unclear, but his suspen- sion meant that Raiola would have been unable to complete any deals until August 9 that year – the day after the closing of the Premier League transfer window. Raiola appealed the decision, and FIFA lifted the ban in June. Federico Pastorello, another big-name football agent, was also accused by the Italian TV show of using Malta as a tax ha- ven. Pastorello owns Sovi Inter- national, a company registered in Malta with its legal address based in Floriana's St Anne's Street. Like Three Sports Business, the address of Sovi Internation- al is shared with Zeta Adviso- ry Services, who offers similar company formation services to that of Credence. Raiola has since announced legal action against Report, while launching a tirade against the programme and RAI. "RAI should be the guarantor of seri- ous and responsible journalism. Instead, a journalist was sent to Malta to recount so many false- hoods and was not avle or will- ing to find the correct address of my company, despite them having consulted the Malta business registry where the ad- dress reported is correct," he told Corriere dello Sport. Meanwhile, Raiola visited Malta this week to address a press conference about Three Sports, saying that Malta is an interesting place in terms or sport and legislation. He said that the company wants to help bring its know- how to the Maltese shores, and hopes to meet with the Malta Football Association to see how football can improve in Malta. During his visit, Raiola also expressed interest in signing a female Maltese player, but did not specify who the player is. "She's one of the best, so we will see if we can sign her," he told the press conference. nmeilak@mediatoday.com.mt Football's super-agent Raiola under fire over Malta tax company Italian TV show Report has accused Mino Raiola of using his Malta company to avoid paying taxes in Italy Sports minister Clifton Grima smiles for a quick snap with footballing super-agent Mino Raiola, who was in Malta earlier this week