Spanish Prosecutors Accuse Real Madrid Coach Carlo Ancelotti Of Tax Fraud And Seek Jail Sentence – News18

BARCELONA, Spain: Spanish state prosecutors have accused Real Madrid coach Carlo Ancelotti of tax fraud, claiming he used shell firms to cover elements of his earnings throughout his first stint on the membership a decade in the past.

Prosecutors in Madrid mentioned in an announcement Wednesday that they’re accusing Ancelotti of two counts of tax fraud and are looking for a jail sentence of 4 years and 9 months. They accused the Italian coach of getting defrauded 1 million euros in 2014 and 2015 by solely declaring the earnings he obtained from Real Madrid whereas omitting his earnings from picture rights.

Many skilled gamers and managers arrange an organization that owns the rights to make use of their title and picture for business functions. But prosecutors declare Ancelotti arrange a “confusing” system of shell firms to cover his further earnings. Ancelotti allegedly used firms “lacking any real activity” based mostly exterior Spain “so that neither he nor the mentioned companies had to pay taxes on the large sums earned in Spain or outside our country,” the prosecutors mentioned. One of the businesses was based mostly within the Virgin Islands.

They mentioned Ancelotti didn’t declare earnings associated to picture rights that reached 1.2 million euros ($1.3 million) in 2014 and practically 3 million euros ($3.2 million) in 2015, and in addition omitted declaring two properties he owned overseas. They mentioned the coach ended up receiving tax refunds of practically 40,000 euros ($43,600) for 2014 and 530,000 euros ($578,000) for 2015.

The 64-yr-outdated Ancelotti coached Madrid from 2013-15 earlier than rejoining the membership in 2021.

Ancelotti is one among soccer’s most profitable coaches. He is the one coach to have received the Champions League 4 occasions, twice with Madrid and twice with AC Milan, and the one coach to have received home league titles in England, Spain, Italy, Germany and France.

He is the newest in a string of main soccer profiles to face a crackdown by Spanish authorities over unpaid taxes, though none have really been despatched to jail to this point.

Former Madrid coach Jose Mourinho obtained a one-yr suspended sentence after reaching a responsible plea for tax fraud in 2019. Star gamers Lionel Messi and Cristiano Ronaldo — amongst others — have additionally been discovered responsible of tax fraud in Spain. Similar to Ancelotti, Mourinho, Ronaldo and Messi had been additionally accused of utilizing shell firms exterior Spain to cover income from picture rights.

Ronaldo agreed to pay a fantastic of practically 19 million euros (then $21.6 million) in 2019, and was handed a two-yr suspended sentence that he didn’t should serve.

Messi and his father had been discovered responsible of defrauding tax authorities of 4.1 million euros (then $4.6 million) but additionally prevented a jail sentence by paying hefty fines.

In Spain a decide can droop a sentence of lower than two years for first-time offenders.

Many of these accused of fraud reached offers with the tax authorities and accepted guilt to cut back their sentences.

Madrid is main the Spanish league and is ready to play Leipzig on Wednesday for a spot within the Champions League quarterfinals.

The membership didn’t instantly reply to a request for touch upon the accusation in opposition to Ancelotti.

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AP Sports Writer Tales Azzoni contributed to this report from Madrid.

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AP soccer: https://apnews.com/hub/soccer

(This story has not been edited by News18 employees and is printed from a syndicated information company feed – Associated Press)