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Tax Fraud Trial Ends: Prosecutors Seek 4 Years for Ancelotti
The tax fraud trial of Real Madrid coach Carlo Ancelotti came to a close on Thursday in Spain, with prosecutors demanding a four-year and nine-month prison sentence for allegedly concealing over one million euros ($1.1million) in income from image rights.
Ancelotti, 65, is accused of creating a complex system of shell companies to hide his earnings from 2014 and 2015, during his first stint at Real Madrid. Prosecutors claim he only reported his salary, omitting his image rights and real estate income.
“We consider the acts of fraud, concealment and omission to be proven,” the lead prosecutor stated in his closing arguments, reiterating the demand for a four-year and nine-month jail term.
Under Spain’s legal system, prosecutors can add or drop charges, and alter the penalty they are seeking, depending on the evidence that is presented during a trial.
Ancelotti, denied intentional tax fraud during his testimony on Wednesday, stating that he had followed the advise of the club in setting up a firm to collect 15% of his annual salary in image rights. He claimed he was unaware that this arrangement allowed him to pay less tax.
“At that time, all the players and coaches were doing it that way, it seemed like the right thing to do,” he said, adding former Real coach Jose Mourinho had a similar arrangement.
During his closing arguments, Ancelotti’s lawyer said his client “did not fully understand what he was signing,” and asked the court to acquit the Real coach.
Ancelotti’s lawyer argued that his client “did not fully understand what he was signing” and requested an acquittal. He also suggested that Spanish tax authorities sought to publicly humiliate Ancelotti, rather than settling the case out of court.
The verdict is pending, but previous cases involving footballers have often resulted in suspended sentences or out-of-court settlements. Notably, Jose Mourinho received a one-year suspended sentence for tax fraud in 2019, while Lionel Messi and Cristiano Ronaldo were found guilty of tax evasion and received waived prison sentences.
