Prosecutor for almost 5-year jail term for Real coach for tax evasion

Real Madrid coach Carlo Ancelotti faces charges of tax evasion after the State Prosecutor's Office in Madrid requested a sentence of four years and nine months in prison for allegedly defrauding the Treasury of over a million euros, reported Xinhua.

The prosecutor alleges Ancelotti evaded paying 386,361 euros in tax for the year 2014 and a further 675,718 euros for 2015 during his first spell as Real Madrid coach.

The Prosecutor's Office explains in its charges that although the Italian declared his earnings as Real Madrid coach, "in order to avoid taxation on the income from image rights", Ancelotti used a "complex" and "confusing" network of trusts and companies filed to channel his income.

One of these companies was registered in London, and another in the Virgin Islands.

The charges explain that Ancelotti was resident in Spain for tax purposes during the period. As such, he should have also declared his earnings from sponsorship deals and his direct earnings from Real Madrid.