Real Madrid’s head coach Carlo Ancelotti appeared before a Spanish court on Wednesday, expressing his belief that his tax situation was compliant with the law. He is currently facing allegations of neglecting to pay 1 million euros (approximately $1.08 million) in taxes related to income from image rights.
“In my opinion, everything was in order,” Ancelotti stated firmly. “I never considered committing fraud.”
On the first day of the proceedings, the Italian manager explained that upon joining the Spanish club, he was presented with a net salary of 6 million euros, leaving it to the club and his British advisor to determine the financial structure.
“I believed this to be quite standard, as all players and the previous coach had done the same,” Ancelotti elaborated during his 40-minute testimony.
He joins a growing list of football stars being scrutinised by the Spanish tax office for alleged tax fraud.
Whereas some high-profile players, including Portugal’s Cristiano Ronaldo and Spain’s Diego Costa, have opted for out-of-court settlements involving hefty fines, others, like Bayer Leverkusen’s coach Xabi Alonso, have chosen to contest their cases in court.
In 2023, the Supreme Court upheld Alonso’s acquittal.
Possible Prison Sentence
The prosecution is pursuing a prison sentence of four years and nine months for Ancelotti, alongside a fine of 3.2 million euros for two instances of tax evasion in 2014 and 2015.
They claim that he reported only his salary from Real Madrid while failing to declare income from his image rights on his tax returns.
Ancelotti noted that image rights hold far less significance for coaches compared to players.
“For coaches, image rights aren’t as relevant as they are for players since we don’t sell jerseys,” he remarked.
Prior to the hearing, the prosecution revealed that Spain’s tax authority had seized Ancelotti’s owed debt along with interest.
There remains the possibility for the parties to negotiate an out-of-court settlement at any stage in the proceedings, with a verdict anticipated within a few weeks.
Ancelotti’s family, including his wife Mariann, son Davide, and stepdaughter Chloe, also provided witness testimony on Wednesday.
Having previously represented Italy 26 times and participated in the 1990 World Cup, Ancelotti returned to Real Madrid for a second coaching term in 2021.
His managerial achievements include five Champions League titles—two with AC Milan and three with Real Madrid.
Compiled by SportArena.com.au.
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