Brazil Coach Ancelotti Sentenced To One Year In Spanish Prison For Tax Fraud

‎On Wednesday, a Spanish court sentenced former Real Madrid manager, Carlo Ancelotti to one year in prison for tax fraud committed in 2014.

‎However, the sentence will not require him to serve time in prison. Prosecutors claimed that the Italian coach used a network of shell companies to conceal additional income during his first tenure at Real Madrid in 2014 and 2015, particularly related to image rights.

‎Prosecutors claimed that Carlo Ancelotti, 66, failed to pay more than one million euros in undeclared earnings during 2014 and 2015. They were seeking a prison sentence of four years and nine months.

‎Ancelotti denied intentionally committing fraud during his high-profile trial in April. He stated that he was unaware that using image rights to receive part of his salary would lead to lower taxes.

‎A Madrid court announced it had convicted Ancelotti for “an offence against the treasury… to the punishment of one year in prison” and a fine of 386,361 euros.

‎Ancelotti showed a “conscious desire to evade the payment of taxes on the income obtained from the exploitation of his image rights, through artificial mechanisms,” the court wrote in a ruling.

‎”The actions are blatantly fraudulent, and the structures used do not conform to a real economic logic. The deliberate concealment of income through opaque structures and entities in tax havens proves a fraudulent intent,” it added.

‎But the former Chelsea, Bayern Munich, and Paris Saint-Germain boss, who no longer lives in Spain, will not serve jail time because the sentence is less than two years and he has no criminal record.

‎The court cleared Ancelotti of the fraud allegation for the 2015 tax year, saying it could not conclude “beyond a reasonable doubt” that his fiscal residence for that year was in Spain.

‎He joins a list of football legends who have run into trouble with Spain’s crackdown on stars who have neglected their tax obligations.

‎In 2019, former Real Madrid manager, Jose Mourinho was given a one-year suspended sentence after pleading guilty to tax fraud.

‎Similarly, Lionel Messi and Cristiano Ronaldo were both convicted of tax evasion and received prison sentences, which were ultimately waived because they were first-time offenders.

‎Ancelotti’s glittering career has seen him win a record five Champions League titles as a manager and lift the European Cup twice with AC Milan as a player.

‎The former Italy midfielder departed from Real Madrid to take over as Brazil’s manager at the end of last season, following a rare season without winning any trophies.