Because Sinner can reside and pay taxes in Monte Carlo without breaking any rules

Because Sinner can reside and pay taxes in Monte Carlo without breaking any rules


February 1, 2024


10:05

Jannik Sinner lives in Monte Carlo and after winning the Australian Open the controversy erupted over the “Italian champion who does not pay taxes in Italy”. But the tennis player from South Tyrol makes no mistake: there is only one risk.

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meeting with Professor Angelo Cremonesi

Professor of Finance, Faculty of Economics, Luis Guido Carli, Rome.

Yannick Siner He chose to live in Monte Carlo, where he moved his tax residence: Did he do something illegal? No, he does not pay taxes in Italy, but in the Principality, is he subject to prosecution under the law? No, can it be said that he immigrated to Monaco purely for financial purposes? No, also because he himself repeatedly justified the decision with professional reasons and opportunities, referring to the highly qualified structures, the quality of daily life and the training climate in ideal conditions, the comparison with the best players which helps him in the process of growth and technical and emotional maturity. In what cases might you risk sanctions? Discrimination lies at the center of vital, economic and emotional interests, and it can only be attacked in one case, but it is not within its jurisdiction.. In essence, for example, it is a type of self-employed Italian worker who lives abroad, essentially represents himself (except when part of the Italian selection), and earns and pays what he owes abroad.

The media and populist controversy is over “National hero who cheats on treasury taxes” It can be summed up in these few lines that accompany the hype around the personality of a tennis player who in recent months (from winning the Davis Cup to winning the Grand Slam at the Australian Open) has seen a huge increase in his reputation. and interest (even pathological, especially regarding his relationship with his girlfriend Maria Braccini) to all aspects of his life. To highlight the matter and explain why, beyond moral objections and social analyzes subject to purely personal interpretations, a sinner cannot be considered a cunning person or a potential tax evader Fanpage.it speak with Angelo Cremonesi, Professor of Finance at the Luis Guido Carli Faculty of Economics in Rome.

Professor, why is it common for many successful athletes to reside in Monte Carlo?
“The correct interpretation cannot start only from social or moral assessments. Certainly, paying taxes in a different country and on the basis of an easier system than the generator system can make many people a little disgusted. But such a consideration cannot be ignored by others who point out To a complex organizational structure centered around the athlete, in this case a tennis player who is among the strongest tennis players in the world (could become number one in the ATP rankings, ed.).”

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What is the main tax advantage of residing in Monte Carlo?
“Even in this case, the evaluation must take into account what a player like Sinner represents and his world behind the scenes. It is not just a matter of 'simple' financial comfort. The need to reduce taxes has become fundamental to managing itself. The form and the apparatus that revolves around it, starting with the personnel In what sense? Let us imagine, for example, what would be the expenditure items necessary to support the entire organization: if they found comfort abroad in a lighter system, in Italy and given the complexity of bureaucracy and regulation, they would risk causing increases compared to what would otherwise be Fair.”

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How can we briefly summarize the main difference between the Monte Carlo tax system and the Italian system?
“Preferential and more inclusive taxation helps a lot with everything related to profits that are not directly linked to prizes won in tournaments played, and which are also subject to tax in the country of residence, such as sponsorship, image rights, marketing and financial investments and real estate.” In the emirate there are no Treasury obligations are of an inherited nature and there are no individual or corporate income taxes. “Be careful, however, this requirement does not apply to the prize money that tennis players collect thanks to victories in the ATP and Slam tournaments because they are primarily subject to the tax of the country in which they pay.”

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Is a person who settles in Monte Carlo and then travels around the world for work making a tax mistake?
“No. Provided that on the basis of the principles of residence for tax purposes, the center of vital interests that insists on the economic and emotional aspects is very clear. In Siner's case there is no doubt in one sense or another: he lives and works abroad, in fact, he often travels to participate in tournaments.” around the world, and when he returns to Monte Carlo, it is there where he trains, and this is where the center of his vital interests lies. He has no wife and children in Italy, but only his parents: in the first case he may be attacked, in the second not because he is not a child; Rather, he is an adult, of the correct proportions, self-employed and permanently residing abroad.”

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Is it true to say that he does not use the services of the Italian state and does not receive resources of any kind other than those allocated to the tournaments?
“He has no public offices or roles. And, I repeat, the fact that the center of his interests is already abroad means that, from a tax perspective, he has no legal obligation other than in his country of residence.”

In what cases does someone like Sener risk sanctions? As it has happened to other athletes in the past, in short.
“He would be in danger if the state had enough confirmed elements to prove that his residence abroad is only fictitious while in fact the center of his social, family and economic life is in Italy. This happened with Valentino Rossi but Sinner's situation is completely different and invincible.”

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How are prizes won around the world taxed? What taxes are they subject to?
“Let's take an example: the prize money that Sinner made and won by winning the 2024 Australian Open did not all go into his pockets. A percentage has already been deducted based on the country's taxes. However, it is certain that he will not have to face double Taxation is the same as it happens for American or French tennis players. As for the former, the difference in reality is that the principle of citizenship prevails over the principle of residence and therefore the tax system remains the same. All over the world, as for the latter, there are international agreements and as a result they are still subject to income tax. In the country of origin.

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Is there an agreement between Italy and the Principality and under what conditions can tax information be exchanged?
“The Principality of Monaco is no longer considered a tax haven by the OECD, and is not included in Italy’s blacklist regarding the possibility of exchanging information on tax matters. The agreement means lifting the restriction of confidentiality and gives Italy the possibility to “request information regarding any tax investigations relating to Italians residing in Monte Carlo. But this is not the case with Sinner. “He is neither an outlaw nor a tax evader.”

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