Real Madrid boss Carlo Ancelotti faces court trial for tax evasion

Carlo Ancelotti recently became the latest addition to a long l of football celebrities that have been investigated the Spanish tax authority. The Real Madrid manager is accused of not paying €1 million ($1.08 million) from image rights revenue during his first spell with the Los Blancos (2013-2015). The 65-year-old is expected to appear before the court on Wednesday.
Besides a prison term of four years and nine months, the prosecutor is also demanding a €3.2 million fine from the veteran manager. The prosecution argues that Ancelotti only reported his Real Madrid salary and not the income generated through image rights in both 2014 and 2015, leading to two counts of tax evasion. The Associated Press reported that one of the allegations against Ancelotti is using shell companies to hide his true earnings. Prosecutors have alleged that the veteran football manager used one shell company that lacked “any real (economic) activity” in the Virgin Islands as part of an alleged scheme.
Ancelotti was present in court himself during proceedings. When he arrived, he was asked television journals if he trusted in the justice system. “I do” he said before walking away.
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Prior to the hearing, the prosecution stated that Spain’s tax authority had seized debt plus interest from the manager. Ancelotti’s trial is set to take place over a period of three days in a Madrid court.
However, the parties could reach an agreement out of court at any point during or before the trial. Portugal’s Criano Ronaldo and Spain’s Diego Costa have eluded punishment in the past with out-of-court payments involving huge fines. In contrast to this, the Spanish Supreme Court had upheld the acquittal of Bayer Leverkusen boss Xabi Alonso following his unwillingness to settle and defended his innocence.
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