Brazilian national team coach Carlo Ancelotti was sentenced to one year in prison for tax fraud committed in 2014.
Brazilian national team coach Carlo Ancelotti was sentenced to one year in prison for tax fraud committed in 2014, during his first stint at Real Madrid. The decision was handed down by the Madrid Provincial Court and also includes a fine of 383,000 euros, equivalent to R$2.4 million at the current exchange rate.
However, the Italian will not be imprisoned. Under Spanish law, sentences of less than two years do not result in mandatory prison sentences if the defendant has no criminal record and pays off all tax debts, which Ancelotti has complied with. Furthermore, he will be barred from receiving tax benefits, subsidies, or Social Security benefits in Spain for three years.
Origin of the infraction and method used
According to the ruling, the coach omitted amounts related to image rights paid by the Spanish club from his income tax return. These amounts were directed to a UK-based company, in which the coach was a partner, with the intention of reducing the tax burden owed to the Spanish tax authorities. The Spanish Prosecutor’s Office accused Ancelotti of setting up a “confusing” and “complex” system of shell companies to conceal income from side contracts, including image and real estate rights, during 2014 and 2015. However, he was acquitted of the charges related to the 2015 tax year.
Statements and Defense
During the trial held in April, the coach stated that he had not acted knowingly to defraud the Treasury. According to his testimony, the scheme was suggested by Real Madrid itself, and he believed it was a routine procedure. “I was only concerned about receiving the net salary of €6 million for three years, and I never realized anything was wrong, nor did I receive any notification that the Public Prosecutor’s Office was investigating me,” Ancelotti testified in court.
He also stated that the system was handled directly between the club and his consultant, without his direct intervention. In justifying his conduct, the coach said: “At that time, all the players and coaches were doing it this way; it seemed like the right thing to do.”
Details of the accusation
The accusation was based on Article 305 of the Spanish Penal Code, which deals with fraud against the Public Treasury. Prosecutors argued that the coach had only declared his salary from Real Madrid, omitting earnings from image rights. In 2014, he should have paid approximately €346,000 in taxes, but the fraud ended up receiving a refund of almost €40,000, generating a total loss of €383,361 to the Spanish treasury. Initially, the Public Prosecutor’s Office requested a sentence of four years and nine months in prison, considering the alleged omission of more than one million euros during that period.
Consequences and institutional positioning
The Brazilian Football Confederation (CBF) confirmed that it is following the case, but stated that the process is being conducted exclusively by the coach’s personal staff. Ancelotti’s press office chose not to comment on the conviction.
