“To avoid taxation of proceeds deriving from image rights”, both those received by Real Madrid and other brands on the occasion of various events, the coach resorted to a “complex” and “confusing” network of trusts and registered companies. Ancelotti would have “simulated” the transfer of his image rights to entities “without real activity” and capacity for exploitation, domiciled outside Spain “thus pursuing opacity before the Spanish Treasury and the concealment of the real beneficiary of the proceeds his image rights, so that neither he nor any of the said companies have to pay taxes on the huge sums received in Spain or outside our country”. These are the accusations from the Madrid Provincial Prosecutor’s Office.

A bad “story” for Carlo Ancelotti, dealing with Spanish justice. The Madrid Provincial Prosecutor’s Office requested four years and nine months’ imprisonment for tax fraud as the former Juventus and AC Milan coach allegedly failed to pay the tax authorities an amount of 1,062,079 euros in 2014 and 2015. Omissions in the tax returns for the current Real Madrid coach, hidden money coming from the exploitation of his image rights which he had transferred to other entities according to the accusations.

The Madrid Prosecutor’s Office claims that Ancelotti signed an employment contract on 4 July 2013 as coach of Real Madrid for the period between July 2013 and 30 June 2016 “specifying in the remuneration for this period, in addition to the work performance, also the proceeds deriving from the transfer of image rights to the club”. It should also be noted that from July 2013 the Italian technician began to work and reside in Spain, establishing a property located in the Spanish capital as his domicile and habitual residence.

Then, in May 2015, the Emilian coach interrupted his professional relationship with Los Blancos, but continued to reside in Spainthen during the same year “Spain was his main center of personal relations and economic interests”.

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