Carlo Ancelotti’s Tax Fraud Trial Wraps Up in Spain
The Charges
Real Madrid coach Carlo Ancelotti’s tax fraud trial has wrapped up in Spain, with public prosecutors demanding he be jailed for four years and nine months for allegedly hiding income from the tax office. Ancelotti, 65, is accused of failing to pay more than €1 million (US$1.1 million) due to undeclared earnings from image rights in 2014 and 2015 during his first spell at the club.
The Allegations
Prosecutors allege Ancelotti set up a "confusing" and "complex" system of shell companies to hide his extra earnings during this time from his image rights and other sources such as real estate, and only reported his salary. They maintain that Ancelotti’s actions were intentional and calculated to evade taxes.
Ancelotti’s Defense
Ancelotti denied having intentionally committed tax fraud when he took the stand on Wednesday. He claimed that on the advice of the club, a firm was set up when he joined Real Madrid so he could collect 15% of his annual salary of €6 million in image rights. Ancelotti stated that he never realized that this allowed him to pay less tax, adding that former Real coach Jose Mourinho had a similar arrangement. He also claimed that he "did not fully understand what he was signing" and asked the court to acquit him.
The Legal System
Under Spain’s legal system, prosecutors can add or drop charges, and alter the penalty they are seeking, depending on the evidence that is presented during a trial. Ancelotti’s lawyer argued that the case could have been settled without going to trial, but Spanish tax authorities wanted to submit Ancelotti to a "public humiliation".
Previous Cases
Previous cases involving footballers have resulted in suspended sentences, often via an out-of-court settlement. Spain has cracked down in recent years on football stars who have not paid their due. Mourinho received a one-year suspended sentence after pleading guilty to tax fraud in 2019. Lionel Messi and Cristiano Ronaldo were both found guilty of tax evasion and received prison sentences that were waived for being first-time offenders.
Ancelotti’s Career
Ancelotti took over at Real Madrid in 2013, leaving in May 2015, before being appointed by Bayern Munich the following year. The former Italy international midfielder, who as a player won the European Cup twice with AC Milan, later managed Napoli and Everton before returning to Real Madrid in 2021. Aside from his success in the Champions League, he has won domestic league titles with Madrid and Milan, in England with Chelsea, in Germany with Bayern Munich and in France with Paris Saint-Germain.
Conclusion
The outcome of Ancelotti’s trial is yet to be determined, but the case has highlighted the importance of tax compliance in Spain. As a high-profile figure, Ancelotti’s actions have been scrutinized, and it remains to be seen how the court will rule.
FAQs
- What is the charge against Carlo Ancelotti?
- Ancelotti is accused of hiding income from the tax office and failing to pay more than €1 million (US$1.1 million) in undeclared earnings from image rights in 2014 and 2015.
- What is the penalty being sought by prosecutors?
- Prosecutors are demanding a four-year and nine-month prison sentence for Ancelotti.
- How has Ancelotti responded to the allegations?
- Ancelotti has denied having intentionally committed tax fraud, claiming that he was misled by the club and did not fully understand the implications of the arrangement.
- What is the significance of this case?
- The case highlights the importance of tax compliance in Spain and demonstrates the country’s commitment to cracking down on tax evasion.