Manuel Pellegrini ‘receives HUGE fine worth over £343k for deliberately defaulting on tax’

Former Manchester City and West Ham boss Manuel Pellegrini has received a £343,000 fine for deliberately defaulting on tax. 

Between April 2014 and April 2017, a duration that covers his entire City tenure, the Chilean manager avoided £816,579.80 according to a Government report published on Monday.

According to inews, HM Revenue and Customs (HMRC) issued the fine, worth a total of £343,728.07, as part of their recent crackdown on tax avoidance within the sport.

In July, it was revealed that a record 329 professional footballers are under investigation for suspected tax avoidance – a number which has dramatically risen from 93 in the previous term.

As part of its operation, the body is said to have appointed a team of fraud experts to liaise with the FA’s Football Compliance Project.

The team reportedly attempt to crack down on tax avoidance through image rights, in which clubs pay players more to be able to use their image in advertising and endorsement campaigns.

Former Man City boss Manuel Pellegrini has received a massive fine for tax avoidance 

These extra payments are believed to often be paid to a firm the player sets up and are therefore subject to 19 per cent Corporation Tax instead of the 45 per cent high-earner Income Tax.

Pellegrini took charge of Manchester City in June 2013 and went on to win one Premier League title and two League Cups before being replaced by current manager Pep Guardiola in 2016.

After a short spell in China, the Chilean returned to England in an attempt to emulate his City success at West Ham. He was dismissed after a year and a half in December 2019 with the Hammers sitting in 17th place. 

The Chilean won a Premier League title with City before being replaced by Pep Guardiola