Real Madrid Coach Carlo Ancelotti will be trial next Wednesday in Madrid, Apter -Being Prosecutions of Paying the Spanish Tax Authorities of over one million euros. Prosecutors are looking for a prison sentence of four years and nine months for the Italian manager.
Especially, Ancelotti is accused of not paying 1,062 079 euros in taxes During the 2014 financial years (386 361 euros) and 2015 (675 718 €), according to the indictment. The Spanish Tax Agency has already seized EUR 1 217 958.24 from Ancelotti to cover the alleged debt, including penalties and interest.
Prosecutors claim that Ancelotti is hiding income related to his image rights and claimed that they have given them to other units. The prosecutor believes that this is a fictitious arrangement designed to avoid taxes.
How the alleged fraud developed
In 2013, Ancelotti signed a contract with Real Madrid, which included not only his salary for coaching services but also compensation for the club’s use of his image rights. However, Prosecutors claim that Ancelotti used companies domicile outside Spain to hide this income. Through a web of contracts and fictitious transfers, he saw that the income for image rights did not show up on his tax returns.
Despite these efforts, the Spanish tax authorities discovered the alleged fraud. The debt has been recycled through a seizure, but the legal process is underway to determine criminal liability.
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The potential impact on Ancelotti
The trial next Wednesday in Madrid is crucial to Ancelotti. If he became guilty, he could receive a prison sentence of up to four years and nine months. In addition, prosecutors seek a total of over three million euros.
This trial not only puts Ancelotti’s freedom and career at risk, but can also put a precedent in the fight against tax fraud in the sports world, especially when it comes to exploitation of image rights and their tax consequences.
The defense perspective
While the prosecution paints a clear picture of alleged tax dumping, Ancelotti’s defense team is expected to claim that he followed all applicable tax laws and that the structures used were legitimate. They may claim that income was explained and taxed correctly in other jurisdictionsAnd that the prosecutor’s claims are based on a misunderstanding of the complex financial arrangements.
A high -profile case with extensive consequences
The Ancelotti case is just one example of the increasing review that football stars and coaches face on their tax issues. As the sport generates ever greater revenue, the tax authorities around the world are bursting at alleged tax evasion.
The result of this trial will be carefully seen by the football world and may have significant consequences for how players and coaches structure their financial issues in the future. It also serves as a reminder that even the most successful figures in the sport are not immune to the scope of the law.
