Ancelotti and the Spanish tax system, the background

The headline is impressive: the Madrid Provincial Prosecutor’s Office is asking for 4 years and 9 months in prison for Carlo Ancelotti. The reality is different, and much more complex. The facts date back to Carlo’s first mandate at the Casa Blanca, the two-year period 2013-15, that of Tenth. Carlo is accused of two tax crimes, one for each season on the Blanca bench: according to the Spanish tax authorities he orchestrated a system of companies based outside Spanish territory to avoid paying taxes on image rights, split 50/50 with Madrid.

defeat and victory

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Carlo defends himself, loses for the 2014 tax year and wins for 2015. He pays what he owes for both years, and given that on 12 July last year the judge dealing with the case definitively agreed with him on the 2015, is entitled to reimbursement of an amount exceeding 1.2 million euros. The Spanish tax authorities have appealed, and this morning’s request is the result of this new procedure. The Prosecutor’s Office does not want to return the amount paid by Ancelotti, and insists on declaring him guilty of tax fraud for 2015 by claiming that Carlo was still tax resident in Spain, something contested by the Madrid coach, who also convinced the judge.

previous

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This war between Hacienda, the Spanish tax system, and the great athletes has been going on for years: the very heavy sentences of Leo Messi and Cristiano Ronaldo made history, but since Xabi Alonso decided to refuse the plea deal and go to trial things have changed radically. The current manager of Bayer Leverkusen won the case, setting an important precedent. Since then, Sergio Ramos, Xavi, Iniesta, Dani Alves, as well as drivers Jorge Lorenzo and Aleix Espargaró have also won. In addition to Ancelotti, obviously. A judicial defeat that the Spanish tax authorities do not want to accept. Hence the appeal that led to today’s headline.