Ancelotti faces legal trouble over Tax evasion

 

Spanish prosecutors have accused Carlo Ancelotti, the manager of Real Madrid, of alleged tax fraud. They claim that Ancelotti created a “confusing” and “complex” system of shell companies to conceal additional earnings related to image rights revenues during his first tenure at the club in 2014-15. The charges against him involve avoiding one million euros (£854,000) in tax. Although Ancelotti declared himself a tax resident in Spain, he allegedly only reported his personal remuneration from Real Madrid in his tax returns. Additionally, he is accused of simulating the transfer of image rights to entities with no real activity outside of Spain to evade taxes. Ancelotti, a highly successful football manager, has worked with clubs such as Juventus, Chelsea, AC Milan, Bayern Munich, and Everton. He holds the distinction of being the only man to have won league titles in England, Spain, Italy, Germany, and France, as well as securing four Champions League titles. Spain has been vigilant in pursuing tax-related offenses among sports figures and celebrities. Notably, in 2017, Lionel Messi received a 21-month jail sentence (later reduced to a fine) for defrauding Spain of 4.1 million euros during his time at Barcelona. Similarly, in 2019, Cristiano Ronaldo accepted an €18.8 million fine for tax evasion charges while playing for Real Madrid. Although the deal included a 23-month jail sentence, it’s important to note that in Spain, convicts typically do not serve time for sentences under two years.