Portugal Colonial - Spain prosecutors seek jail for ex-Madrid coach Ancelotti over tax

Madrid state prosecutor's office accused the 64-year-old Italian of having cost Spain's treasury more than one million euros in undeclared earnings from image rights in 2014 and 2015.

"Although he himself declared himself to be a tax resident in Spain and indicated that his home was in Madrid, he only declared in his tax returns the personal remuneration received from Real Madrid," the tax office said in a statement.

It accused Ancelotti of allegedly setting up a "confusing" and "complex" system of shell companies to hide his extra earnings from his image rights.

Prosecutors also alleged the Real Madrid coach "simulated" the transfer of his image rights to entities "without any real activity" based outside of Spain to maintain "opacity vis-a-vis" the Spanish treasury.

A Spanish court in July ordered Ancelotti -- regarded as one of the greatest coaches of all time -- to stand trial over the affair, but no date has been set.

- Spanish crackdown -

Spain has cracked down in recent years on celebrities like football stars Lionel Messi and Cristiano Ronaldo for not paying their full due in taxes.

Both players were found guilty of tax evasion and received prison sentences that were waived for being first-time offenders.

Colombian superstar Shakira in November agreed to receive a three-year suspended sentence and pay 7.3 million euros in fines to settle a tax fraud case and avoid trial.

Prosecutors had accused the "Hips Don't Lie" singer of defrauding the Spanish state of 14.5 million euros ($15.7 million) on income earned between 2012 and 2014, charges Shakira had denied, saying she only moved to Spain full time in 2015.

Ancelotti took over at Real Madrid in 2013, leaving in May 2015, before being appointed at Bayern Munich the following year.

He later managed Napoli and Everton before returning to Real Madrid in 2021.

Ancelotti had been tipped to coach Brazil's national team when his contract with Real Madrid ended but instead in December he extended it to June 2026.

Ancelotti has won the Champions League four times -- twice with AC Milan and on two occasions with Real Madrid.

He has won domestic league titles with Madrid and Milan, in England with Chelsea, in Germany with Bayern Munich and in France with Paris Saint-Germain.

Madrid face RB Leipzig on Wednesday in a Champions League last-16 second leg clash, after Ancelotti's side carved out a 1-0 advantage in Germany.

A.S.Diogo--PC