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Spain’s former king Juan Carlos is hoping to bring to a close one of several probes into his finances by paying a penalty tax on large sums he allegedly spent on credit cards belonging to a tycoon friend.
The legal team of Juan Carlos, who abdicated in 2014, has presented Spanish tax authorities with a proposal to take steps to legalise some of his financial activities, according to El País newspaper. The move follows news that the former monarch, now 82, is being investigated for spending hundreds of thousands of euro using credit cards belonging to the Mexican businessman Allen Sanginés-Krause.
Juan Carlos left Spain for the United Arab Emirates in August, as controversy mounted surrounding his finances. An investigation had begun into a €65 million payment he received from the Saudi royal family in 2008 and which he subsequently paid to Corinna Larsen, a German-born businesswoman widely reported to be his former lover.
Investigators are deciding if that money was a bribe linked to the awarding of a contract to a Spanish-led consortium to build a high-speed rail link in Saudi Arabia. However, given that the money changed hands while Juan Carlos was still king, it is thought he could avoid prosecution by claiming immunity. Another probe is looking into allegations that he hid money in tax havens.
In the separate credit card case, investigators believe that the former monarch may have spent about €500,000 between 2016 and 2018 at the expense of Mr Sanginés-Krause, without declaring the transactions. The money was used to pay for travel, hotels and meals, according to El País, and could constitute tax fraud if more than €120,000 in undeclared funds was spent during any one year.
Mr Sanginés-Krause, an art collector and horse lover with a background in banking, owns Killua castle, near Clonmellon in Co Westmeath, which the former king visited in 2017.
Tarnished reputation
Juan Carlos took the throne in 1975, succeeding the dictator Francisco Franco as head of state and the young king was instrumental in leading the country towards parliamentary democracy. This earned him substantial goodwill among Spaniards although a string of scandals linked to his personal life has tarnished his reputation in recent years.
The news of his attempts to legalise at least part of his finances has drawn speculation that the former king is planning to return to Spain soon. However, there has been no official confirmation that this is the case.
“The consequences of any wrongdoing affect us all and the principal of equality should be established, independently of political allegiance,” said José Luis Ábalos, of the Socialist Party and a government spokesman, of the reported attempts to settle the credit card case.
However, the leftist Podemos, the junior partner in the coalition government, was more critical of the former monarch. Party spokesman Pablo Echenique said he had “chosen to confess that he has defrauded the tax authority”.
Pablo Casado, leader of the conservative opposition Popular Party (PP), instead focused on the former monarch’s achievements, highlighting “his legacy and the important work he has done for Spaniards”.