Real Madrid coach, Carlo Ancelotti has claimed that he is ‘innocent’ after being charged on two counts of defrauding the Spanish Treasury which took place during his first spell at Real Madrid between 2013 and 2015.
The Italian manager is reportedly facing a prison sentence of four years and nine months after allegedly failing to pay a combined tax of over £854,000 (€1million) on his image rights while declaring himself as a Spanish tax resident.
The prosecutors’ official statement with the announcement of the charges alleged that the 64-year-old set up a ‘complex’ and ‘confusing’ network of trusts and companies that allowed the money earned from his image rights to be domiciled outside of Spain.
This, the prosecutors stated saw Ancelotti ‘pursuing opacity in the face of the Spanish Public Treasury and the concealment of the real beneficiary of his income from his image rights, so that neither he himself nor any of the said companies, would have to pay taxes on the large amounts received in Spain or outside our country’.
But the former AC Milan manager is believed to have rejected the claims after his side’s Champions League draw with RB Leipzig on Wednesday evening.
‘One thing that impresses me because we are talking about a declaration from 2015,’ Ancelotti told Sky Sport Italia.
‘They think I was a resident of Madrid, but I was not a resident here. I have already paid the fine, the money has been paid into the accounts of the tax inspectorate and the parties are talking to find a solution.
‘I am convinced that I am innocent, I did not reside in Madrid in 2015. For them I was resident here, we will see what the judge decides.’
Ancelotti is claimed to have ‘omitted all income corresponding to the exploitation of his image rights’ when filing his self-assessed tax declarations, which in 2014 amounted to £1.1m (€1.2m), and £2.5m (€2.9m) in the 2015 financial year.
Prosecutors believe this amounted to tax bills totalling £33,813 (€39,575) in the first financial year, and £577,340 (€675,718) in the second.
