The Argentinean rock band is supposedly being investigated because of a suspicious contract

Por People Staff
Updated Diciembre 04, 2007

Argentinean rock band Soda Stereo is being investigated by the Internal Revenue Service (SRI) of Ecuador for supposed tax fraud after registering a contract of only $40,000 for a concert in Guayaquil on Oct. 29, according to news site Ecuador

The SRI supposedly grew suspicious when they saw the contract, which reported a payment figure much lower than the group typically makes for a concert, and because of the low number, the group led by Gustavo Cerati, 48, only paid $10,000 in taxes for their earnings from the performance. Ecuadorian law stipulates that foreigners who profit from public shows must hand over 25 percent of their earnings to the government.

After conducting a recount of the show's tickets, the SRI discovered that 30,676 tickets were sold, which comes out to a value of $1,883,180.

Director of the SRI Carlos Marx Carrasco told the website that “if an artist makes a million dollars, then he has to pay 25 percent of that value, or $250,000. It's not right for him to get paid a million dollars and present us with a contract that says he's making $40,000.”

According to Argentinean newspaper La Voz, Pop Art, the organizer of the group's tour, explained that the show “was sold to the company Team Producciones for $200,000 under circumstances of artists' fees,” and that no charges have been pressed against Pop Art or Soda Stereo.