Real Madrid coach Ancelotti tells tax trial did not seek to defraud
Real Madrid coach Carlo Ancelotti denied in court having intentionally committed tax fraud on the opening day of his trial for allegedly failing to declare income to Spain's tax office, the latest in a string of such cases targeting sports figures in the country.
Prosecutors are seeking a jail term of four years and nine months for the 65-year-old Italian, accusing him of failing to pay more than one million euros ($1.1 million) due to undeclared earnings from image rights in 2014 and 2015 during his first spell at the club.
They argue Ancelotti had only reported the salary he was paid by the club and had omitted income from his image rights in his tax returns during this period.
Prosecutors allege he set up a 'confusing' and 'complex' system of shell companies to hide his extra earnings during this time from his image rights and other sources such as real estate.
Ancelotti told the High Court of Justice in Madrid that this payment system had been proposed to him by Real Madrid, and that 'all the players do it' as did another former coach, Jose Mourinho.
'When the club suggests it to me, I put Real Madrid in touch with my advisor. I didn't deal with it because I had never been paid that way,' he said.
'I never realised that something wasn't right,' he added, saying he 'never considered committing fraud'.
Ancelotti arrived at the court with his wife Mariann Barrena and his son Davide, who serves as assistant manager at Real Madrid.
The trial is expected to last two days. The parties could reach an out-of-court agreement at any point in the process. Previous similar cases involving footballers have resulted in suspended sentences, often via an out-of-court settlement.
Ancelotti told the court he never realised that the company he had set up to transfer these rights to him 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.
Spain has cracked down in recent years on top football players who have not paid their due.
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