Film legend Michael Douglas is to be investigated by the Spanish and American tax authorities over the sale of a visitor centre he founded in Majorca, Spain.

The Majorcan government bought the FATAL ATTRACTION star's Costa Norde centre from him last year (03) for $6 million (GBP3 million).

But Socialist politicians in the country have accused Douglas of failing to declare more than $2.9 million (GBP1.5 million) to the American taxman, reports British newspaper THE DAILY STAR.

And Spanish authorities could also be owed money because of irregularities in the operation.

The Majorcan MPs' spokesman, ANTONIO DIEGUEZ says, "We don't believe he has acted in bad faith. If anything, he's been badly advised by the Majorcan government.

"An official investigation by both the Spanish and the American tax authorities is needed."

30/01/2005 14:14