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Ancelotti in trouble: Spanish prosecutor asks for 4 years and 9 months for tax fraud

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The Madrid Provincial Prosecutor's Office has requested a four-year and nine-month prison sentence for Real Madrid coach Carlo Ancelotti, accused of tax fraud totaling €1.062.079 in the 2014 and 2015 tax years. According to the newspaper Marca, Ancelotti is charged with two tax crimes, since, despite declaring himself a resident of Spain for tax purposes and that his domicile was in Madrid, he failed to fulfill tax obligations relating to the use of his image rights, which were transferred to third-party entities.

The prosecution claims that Ancelotti, while concentrating on the Champions League match against RB Leipzig, signed an employment contract on 4 July 2013 as manager of Real Madrid, covering the period from July 2013 to 30 June 2016. The contract included remuneration for his work and proceeds from the sale of his image rights to the club. Although the Italian coach began working and residing in Spain in July 2013, establishing his domicile in Madrid, the prosecution claims that Spain remained his main centre of personal relations and economic interests even after the premature termination of his relationship with Real Madrid in May 2015.

The prosecution emphasizes that Ancelotti would have used a network of trusts and complex companies to evade taxation on income from image rights, simulating the transfer to entities "with no real activity" located outside Spain. This would have contributed to opaque his financial situation with the Spanish Treasury, allowing him to avoid paying taxes on large sums received both in Spain and abroad.

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