Crime & Justice

Ancelotti indicted for allegedly avoiding 1 million euros of tax in Spain

Madrid, Jun 22 (efe-epa).- Spanish prosecutors have indicted football manager Carlo Ancelotti for allegedly avoiding over 1 million euros in tax payments during his time at the helm of Real Madrid.

The Prosecutor’s Office in the Community of Madrid suspects the Italian coach, who currently manages English side Everton, withheld 1.06 million euros ($1.18m) from state coffers between 2014 and 2015 by concealing image rights revenues.

Ancelotti penned his contract with Real Madrid in 2013 and led the team for two seasons, during which period he was registered as a Spanish resident.

The Italian coach had two contracts with the club, one on his employment and another ceding his image rights.

While he declared his earnings as Real Madrid’s manager, prosecutors accused him of concealing revenues earned through his image rights, either deriving from his relationship with the club or with other brand associations “in order to avoid his obligations with the public treasury.”

The office added that Ancelotti allegedly used a complex network of shell companies, some of which were registered in tax havens, in order to conceal the identity of the beneficiary of the image rights revenue from the Spanish tax agency.

A judge will now decide whether to admit the case.

Ancelotti is not the first sporting personality to become embroiled in image rights-related tax issues in Spain.

In 2017, Lionel Messi paid a 252,000 euro fine and was handed a suspended prison sentence for avoiding 4.1 million euros of tax payments between 2007-09. Last year Cristiano Ronaldo paid 19 million euros in fines in a tax fraud plea deal relating to his time at Real Madrid.

Most recently, Diego Costa paid just over half a million euros in fines as part of another plea deal.

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