Why is Real Madrid’s Carlo Ancelotti facing nearly 5 years of prison? Here’s all you need to know

Real Madrid’s plans for the 2024-25 La Liga season have already hit the ground running as they are set to welcome Kylian Mbappe and Endrick in the attacking front. However, those plans could hit a minor stumbling block after developments on Wednesday (Mar 6) in Spanish courts. According to media reports, Real coach Carlo Ancelotti could be sentenced to five years for tax fraud charges. So what is the case all about and why has Ancelotti facing these charges?

What is Carlo Ancelotti’s tax fraud case?

The case originally goes back to the period between 2013 and 2015 during which the Italians enjoyed a couple of successful years. However, according to Spanish persecutors Ancelotti is accused of using shell companies to hide parts of his income. He used the “confusing” system to hide a part of his entire income earned during his first stint in the Spanish capital. Persecutors state that Ancelotti only declared his salary earned from Real Madrid and did not mention the income earned from image rights.

They accuse the coach of having defrauded €1million (around £855,000) in 2014 and 2015. This was done by setting up shell companies to hide his extra earnings.

It’s alleged only 50 percent of his image rights went to Vapia Limited, with the other half going to Vapia LLP – a company domiciled in London. As a result, the prosecutor has claimed Ancelotti’s image rights payments topped £1million in 2014 and even went close to £3million during 2015 – income the Italian-born manager didn’t pay any tax on if true.

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According to Spanish laws, any foreign employee failing to declare his or her income resulting in non-payment of taxes is entitled to four years and nine months in prison.

Will Ancelotti serve time in jail?   

No, dating back to previous cases in Spain several high-profile names including Cristiano Ronaldo and Lionel Messi have faced similar issues. But neither of them was convicted as the tax issue was either resolved by paying fines or was not proven entirely. Ancelotti could also get a suspended sentence until he is found guilty again in a similar tax fraud case.

Will Carlo Ancelotti’s case have any issue on Real Madrid’s plan?

As things stand, until found guilty or until committing another such fraud, Carlo Ancelotti and Rael Madrid’s partnership shall be intact. He will continue to lead the side in the dugout where during the Champions League and La Liga campaign. This would mean, there will be no bearings on Real’s season as they continue their hunt for the Champions League and La Liga double.

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