Ex-Real Madrid and Brazil manager Carlo Ancelotti convicted of tax fraud

Former Real Madrid manager and current Brazil boss Carlo Ancelotti has lost his tax fraud case against the Spanish state, and has been found guilty on one count. It looks as if the Italian will avoid any jail time for his offences.

That is the latest coming out of the Spanish capital, where Marca say that Ancelotti has been sentenced to a year in prison for his offences. The tax department had accused him of fraud during 2014 and 2015, when he was in charge and then subsequently sacked by Real Madrid following his first spell.

Guilty on one count, acquitted on another

Initially, the tax department had accused Ancelotti of defrauding the state out of just over €1m over the two years, claiming that he did not pay the right amount due as a resident of Spain. Ancelotti had claimed that he had spent sufficient time elsewhere not to qualify as a resident in Spain during some of that time.

Ancelotti was acquitted of the charge in 2015, which amounted to €676k, but found guilty of the charge in 2014. As a result he will have to pay a fine of €386k, equivalent to the amount of tax that was not paid, and is also barred from receiving government grants going forward. He has also been sentenced to a year in prison.

Why Carlo Ancelotti will avoid jail time

However the Italian manager will not spend any time in confinement. In Spain, depending on the nature and severity of the crime, any sentence under two years can be regarded as a probation period. Provided Ancelotti stays the right side of the law for the next two years, he will not be forced to serve his one-year sentence. Ancelotti had defended his innocence in court, neglecting to take a settlement deal with tax department.