“To avoid the taxation of income from image rights”, both those received by Real Madrid and other brands during various events, the coach used a “complex” network and “confusing” trusts and registered companies. Ancelotti would have “simulated” the transfer of his image rights to entities “without real activity” and without operating capacity, domiciled outside Spain “thus continuing the opacity before the Spanish Treasury and the concealment of the true beneficiary of the proceeds of his image rights, so that neither he nor any of these companies must pay taxes on the large sums received in Spain or abroad. These are the accusations from the Madrid Provincial Prosecutor's Office.
A bad “story” for Carlo Ancelotti, struggling with Spanish justice. The Madrid provincial prosecutor's office requested four years and nine months' imprisonment for tax evasion, after the former Juventus and AC Milan coach failed to pay the tax authorities an amount of 1,062,079 euros in 2014 and 2015 Omissions in the tax declarations of 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 public prosecutor's office claims that Ancelotti signed on July 4, 2013 an employment contract as coach of Real Madrid for the period from July 2013 to June 30, 2016 “specifying in the remuneration of this period, in addition to the execution of work, also the profits 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 as his domicile and habitual residence a property located in the Spanish capital.
Then, in May 2015, the Emilian coach interrupted his professional relationship with Los Blancos, but continued to reside in Spain.therefore during the same year “Spain was his main center of personal relations and economic interests”.
