CRIMINAL LAW
On December 21, 2022, the 8th Section of the Provincial Court of Barcelona issued a ruling acquitting former motorcycle racer and world champion Sito Pons of a total of six offenses against the Public Treasury. The Public Prosecutor had sought an excessive prison sentence of 24 years and fines exceeding 12 million euros for what it claimed was a failure to pay taxes in Spain between 2010 and 2014, despite being legally obligated to do so.
This ruling was appealed by the Public Prosecutor’s Office, the State Attorney, and the Generalitat of Catalonia. However, all appeals were dismissed, and the decision was upheld by the High Court of Justice of Catalonia on April 7, 2025, thus bringing to an end a judicial process that lasted over a decade. During this time, the former racer endured the well-known “dock penalty” (i.e., the toll of being publicly accused), all while firmly resisting the ever-present temptation to reach a plea deal with the prosecution in exchange for reduced prison time and fines, and to avoid what would inevitably be a highly publicized trial.
In this case, the prosecution claimed in its indictment that between 2010 and 2014, Sito Pons defrauded the tax authorities by pretending to reside abroad—specifically in Monaco and London—when in fact, according to the Tax Agency, his main base of life and activities was in Spain. He was said to have had his racing team’s headquarters in Castellbisbal (Barcelona), where he allegedly maintained a network of companies used as shell corporations to evade taxes, registered in tax havens or low-tax jurisdictions such as the Isle of Man or the Virgin Islands.
It is well known that if the Spanish Tax Agency can prove that a person (i) resided in Spain for more than 183 days in a calendar year—including temporary absences, unless fiscal residency in another country is proven—or (ii) has in Spain the main base or center of their economic interests or activities, either directly or indirectly (with some exceptions), that person is considered a Spanish tax resident and must pay taxes accordingly. Importantly, the burden of proof lies with the Tax Agency, which must demonstrate that these conditions are met.
However, in this case, the courts did not find sufficient evidence that Sito Pons was a tax resident in Spain between 2010 and 2014, for the following reasons:
- Most of his financial interests and economic activities were located outside Spain, except for a few properties he owned within the country.
- He had lived abroad for over 30 years. Specifically, during the years in question, he lived first in Monaco (2010–2012) and then in London (2012–2014). His defense presented rental contracts, utility bills, airline tickets, a car purchase in London, among other documents.
- He spent more than 200 days traveling to racing circuits worldwide, and was not a tax resident in Spain.
- The industrial warehouse of his racing team in Castellbisbal was merely a storage facility, while the company’s official headquarters was in London, where he currently resides and holds the position of manager of Pons Racing.
- Many of the surveillance operations on vehicles raised serious doubts about whether the person being followed was indeed Mr. Pons, as the vehicles could have been driven by other people.
Given these facts, the courts determined that the prosecution, which bore the burden of proof, failed to substantiate the alleged criminal acts. For instance, they did not even call witnesses such as the racers, mechanics, or sponsors to testify regarding where contracts were signed and where the work was carried out.
Undoubtedly, Sito Pons is not the first athlete to successfully defeat the tax authorities, having been preceded by others like Sete Gibernau and Xabi Alonso—although only after enduring the emotional toll of being a defendant for years and the accompanying public humiliation. Others, however, have not been as fortunate.
