Backgammon News - $1 Million Tournament Postponed

$1 Million Tournament Postponed.

Well, crap.

Freaking taxes.

The Marbella Backgammon International Club regrets to announce that the planned inaugural event featuring the Palamedes Challenge Cup for US$1 million has had to be postponed.

This postponement is for the benefit of our participants. The Spanish Tax Agency – The Hacienda – has today advised us that in addition to paying 16% IVA on the Tournament entry fee, Players could be liable for withholding tax of up to 35% on any prize money won in excess of €600. This clearly would be unacceptable for our participating Players and could not be absorbed by the Tournament

ah well, at least I didn't enter.

But it does raise some points:
Facts:

1. a tournament payout in American dollars at a Spanish Resort organized by British
   
2. the website promoted how all of the VAT would be returned for non-Spanish entrants
   
3. the Spanish Tax Agency is called "The Hacienda" making it sound like some central american code for "kickbacks"
   
4. Travelling with more than $100,000 in American Cash will cause problems at *any* border, especially the American one.
   

Speculation:

1. probably 30% of the entrants are tied to "extralegal" businesses, such as gun running, oil trading, etc.
   

Nothing about this says "squeaky clean and 100% above board"

I'm just wondering why the payout wasn' t made in diamonds. Easier to get across borders, no worries about exchange rates, etc.