Carlo Ancelotti Denies Tax Fraud Allegations During Court Trial
Carlo Ancelotti, the current head coach of Real Madrid, has addressed allegations of tax fraud amounting to one million euros for the fiscal years 2014 and 2015 during a court trial. Ancelotti firmly stated that he never intended to commit any fraud and claimed that it was Real Madrid that suggested a method for him to collect his image rights in a way he believed was legitimate and beneficial to the club's tax situation.
The prosecution is seeking a sentence of four years and nine months in prison against Ancelotti for two offenses involving the Public Treasury. The Tax Agency has already collected a significant tax debt from the coach, which includes a seizure totaling approximately 121,795,824 euros, along with a late payment surcharge of 24,359,371 euros and an additional 4,729,810 euros in interest. Additionally, the prosecutor has called for two fines that cumulatively amount to 3,186,237 euros.
In preliminary discussions, Ancelotti's lawyer requested that documents be included in the proceedings indicating he had instructed Real Madrid to make the payments in question, countering the argument from the State Attorney that these payments were voluntary.
In his statements, Ancelotti detailed that upon joining Real Madrid in July 2013, he signed a federative contract in which 15 percent of his salary was designated to be paid through image rights. He noted that this arrangement involved a ceding company for the rights and emphasized that he negotiated contracts on a net basis, specifically referring to a figure of six million euros per season.
"I never gave much importance to image rights; coaches are not as significant as players in that regard," Ancelotti explained. He insisted that his sole concern was to secure a net salary of six million euros for three years, maintaining that he was unaware of any illicit activity. It wasn't until 2018 that he learned about the ongoing investigation, asserting, "I never thought about committing fraud because it has never happened to me."
Ancelotti reiterated that Real Madrid had suggested the formula for collecting image rights and that he had consulted his tax advisors, believing all practices were legitimate. He asserted that his involvement was limited to what his tax advisors managed, emphasizing that he did not have deeper knowledge of the situation.
During the trial, Ancelotti's wife, Mariann Barrena, and his children also provided testimony. She recounted their move to Madrid in July 2013 following her husband’s signing with the team, and their return to London in 2015 after his contract ended. "All this about image rights has been very strange," she noted, pointing out that her husband was not a player known for selling jerseys and that his contract did not mention image rights prior to his arrival.
Ancelotti was also questioned regarding his residency in Spain, particularly the duration of his stay in 2015 after his dismissal as coach in May. The inquiry aimed at determining whether he was obligated to pay taxes to the Spanish Treasury. Ancelotti confirmed he spent only 155 days in Spain that year, clarifying that under Spanish law, tax residency is designated only for individuals who live in Spain for more than 183 days within a calendar year.
His wife added context, saying they left Madrid at the end of May due to the harsh response from fans following his dismissal, contributing to their decision to return to the UK. The trial continues as Ancelotti seeks to clear his name amid serious allegations.
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