Real Madrid Boss Carlo Ancelotti Facing Five-year Prison Sentence Over Alleged Tax Fraud; Reports

Real Madrid boss Carlo Ancelotti facing five-year prison sentence over alleged tax fraud; reports (Image Source: IANS)

Real Madrid: Real Madrid's head coach Carlo Ancelotti has been accused of defrauding the Treasury of over 1 million euros during his tenure between 2014 and 2015 as Real Madrid manager, says a report.

According to Relevo (Spanish sports website), Ancelotti now faces the grim prospect of a jail sentence of four years and nine months and the ignominy of a tainted reputation.

"The charges stem from allegations that Ancelotti failed to declare income from his image rights in his tax returns, instead channeling the funds through a company named Vapia Limited. Prosecutors contend that Ancelotti orchestrated a scheme to conceal his earnings, transferring his image rights to Vapia for a substantial sum and subsequently omitting the corresponding income from his tax filings.

"The amounts relate to 386,361 euros in 2014 and 675,718 euros in 2015. If found guilty, one of the most decorated managers in footballing history could see his career end in disgrace," the report stated.

Amidst the accusations, details have emerged of a purportedly elaborate network of trusts and companies set up by Ancelotti to shield his image rights earnings from Spanish jurisdiction. The complexity of these arrangements has drawn scrutiny from legal authorities, painting a picture of a manager entangled in a web of financial subterfuge.

"Prosecutors claim that in July 2013, Ancelotti paid 21 million pounds (25 million euros) to Vapia for the ten-year transfer of his image rights. He then reportedly established himself as the company's CEO, shortened the term to three years, and reduced the sale price to 854,000 pounds (1.06 million dollars). Ancelotti 'omitted any income linked to the use of his image rights' to the tune of 1.1m pounds (1.4m dollars) in 2014 and 2.5m pounds (3.1m dollars) in 2015."