Manchester City could be facing tax claims and potential fines up to £24 million due to allegations of unpaid taxes related to payments made to former manager Roberto Mancini, highlighted in a recent report from Tax Policy Associates.
The report outlines that £8.866 million paid through a consultancy agreement with Abu Dhabi-based club Al Jazeera actually constituted remuneration for Mancini's role at Manchester City and should have been processed through the UK payroll system.
There are substantial grounds for a criminal investigation into the circumstances surrounding the establishment of this fictitious scheme, the report states, although it notes that no accusations against specific individuals have been made.
Mancini, now the head coach of the Italian national team, commented that the alleged dual contract does not concern him.
Manchester City's hierarchy maintains their innocence, with CEO Ferran Soriano referencing evidence that categorically proves the funds did not come from the owner. Furthermore, Chairman Khaldoon Al Mubarak holds British diplomatic immunity, which could complicate any potential legal proceedings.
