Ancelotti accused of tax evasion in Spain

Monday, 22 June, 2020 45comments  |  Jump to last

Updated Everton manager Carlo Ancelotti is in hot water in Spain after being accused by prosecutors of not paying around €1m in taxes.

The charge concerns revenue from image rights during his time in La Liga as manager of Real Madrid in 2014-15.

According to the BBC, the Madrid Community Prosecutor's office claims Ancelotti concealed revenues "intending to avoid his tax duties towards the public treasury with no justification".

The 61-year-old Italian didn't initially respond to the charge publicly but was asked about it on 23 June during his press conference ahead of Everton's match at Norwich.

"It's an ongoing dispute with the Spanish authorities,” he said. “A lot of players and managers had the same problem in Spain. I leave it in my lawyers' hands. They are experts and I'm not so worried about this."

 

Reader Comments (45)

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Rob Halligan
1 Posted 22/06/2020 at 13:35:31
I know there's one or two on here who are members of the law society, so what's the possible consequences of this?
Rob Halligan
3 Posted 22/06/2020 at 13:57:57
I've been informed Ancelotti owes €1M, so loose change for him then.
Mark Andersson
4 Posted 22/06/2020 at 14:37:49
Is this for real.. or the media being desperate for click bate because we now have a good manager.

Or is the stress of being our manager the reason behind Carlos loss of weight and gaunt look..

Never a dull moment being a blue fan eh...

Jay Harris
5 Posted 22/06/2020 at 14:47:46
I think everyone in football who has had anything to do with Real Madrid has been up for tax evasion even Jose Mourhino.

I guess the prosecutor is a Barcelona fan.

Slap on the wrist and a huge fine are to be expected.

John Dean
6 Posted 22/06/2020 at 14:52:34
That's a wonderful picture but I have absolutely no idea of the message he is sending.
Craig Walker
7 Posted 22/06/2020 at 15:42:37
RS fan told me about this today. I love it how anything negative comes straight from them. I never mentioned the RS furlough fiasco. And they call us 'bitter Blues'.
Paul Hewitt
8 Posted 22/06/2020 at 15:45:56
Why do people with money not want to pay tax?
Pat Kelly
9 Posted 22/06/2020 at 16:57:07
The money was only resting in his account.
Mike Gaynes
10 Posted 22/06/2020 at 17:50:38
Carlo's been charged with evading a million euros in Spanish taxes during his time as manager at Real Madrid.
John Wilson
11 Posted 22/06/2020 at 18:01:08
Ronaldo was €18M, and Messi and accountant dad, €4.7M fraud. It is a criminal offence in Spain in terms of the Ancelotti situation below.

Messi got a 2-year suspended sentence then down to 15 months apparently. They apparently used shell companies which shows on records as several different people.

Carlo allegedly defrauded approx £1M over 2 years, 2014 and 2015. Carlo, if the alleged offence is true, will have to pay the money back plus fine. Might get a shorter suspended jail sentence too.

Dave Williams
12 Posted 22/06/2020 at 18:03:22
Until I retired, I was a partner in a large firm of chartered accountants and acted for a number of footballers / entertainers who were under enquiry with HMRC over image rights.

Without boring everyone with the detail image rights as tax planning was believed to be legal if it was done properly and part of the planning involved full disclosure to HMRC. This case involves the Spanish authorities of whom I had no experience but most countries take the same approach.

It can be common in such matters for the paperwork concerning the planning to be often deficient resulting in the image rights income falling to be taxed in the individual's country of residence rather than in a more beneficial jurisdiction.

If Carlo's planning does not work he could expect to pay tax and interest, probably a hefty penalty as well but a custodial sentence would be highly unlikely and indeed unusual.

Matt Traynor
14 Posted 22/06/2020 at 18:44:13
There is a certain irony here. Until a few years ago, footballers in Spain were on the standard entertainer tax rate, of 10%. Same as a street busker.
Mark Andersson
15 Posted 22/06/2020 at 21:22:45
Matt how interesting maybe I should go busking in Spain.. I can sing several Beatle songs in Spanish...

Jerome Shields
16 Posted 22/06/2020 at 23:19:10
Dave #12,

Thank you for your clarification. It's something that can be sorted. No doubt accompanied with sensational headlines and Everton detractors thinking they are going to have a field day.

Dave Williams
17 Posted 23/06/2020 at 09:43:15
Jerome, in my experience, the personality has no idea what has been done! It's all suggested by accountants, lawyers, or more likely agents, and all the personality does is sign on the dotted line and pay a huge fee for so doing.

The responsibility does of course lie with the taxpayer rather than the advisor but certainly in this country, HMRC understands that the personality cannot usually answer questions about it because he really has no idea what has been done, hence custodial sentences are not usually an issue.

Liam Reilly
18 Posted 23/06/2020 at 11:18:32
"...hence custodial sentences are not usually an issue."

This is Everton; he'll probably get Life.

Jerome Shields
19 Posted 23/06/2020 at 11:53:45
Dave #17,

You can see how it happens when a personality operates, especially in different jurisdictions.

The agent and club following what went before and it seems to work. In the meantime, the tax authorities are catching up in their own good time. As you say, the personality is all trusting and hopeful.

Joan Collins in her Dynasty years had her agent engage people to sort out her tax affairs. She found at the end of her period on Dynasty that she had a tax demand from the authorities, which in fact resulted in her having worked on Dynasty for nothing. The authorities accepted payment, but did not pursue a custodial sentence. She had no redress and was surprisingly accepting of it, which I admired her for.

I myself get my tax return in early and operate in different jurisdictions. I find I have to, to keep on top of things and even able / trusted advisors can get caught out. At least in this situation, recovery is possible. An unexpected tax demand is the last thing anyone wants.

Justin Doone
20 Posted 23/06/2020 at 12:04:43
They're all at it. Spain are rightly clamping down on the rich who avoid tax because they are advised it's worth the risk by overly expensive financial advisors.

Some of which will overstretch the loophole as it isn't they who are having to squeeze through it.

I'm more interested in hoping this gives our 61-year-old manager added motivation to win silverware and a few millions as a bonus.

Dave Abrahams
21 Posted 23/06/2020 at 12:37:52
There has obviously been a big mistake here, Carlo is a Catholic and we are not allowed to steal or tell lies. It's frustrating at times but we always follow the commandments, I don't even tell white lies, honest.
Brian Harrison
22 Posted 23/06/2020 at 12:51:13
Dave #21,

I guess you said all of the above with a very straight face, haha. I think you missed your vocation: you could easily be a minister in Johnson's cabinet, where falsehoods are a way of life.

Dave Abrahams
23 Posted 23/06/2020 at 13:41:14
Brian (22), I think you proved my point in a way, there are are no Catholic’s in Johnson’s cabinet because of our inability to lie off the cuff !!!
Chris Williams
24 Posted 23/06/2020 at 13:51:14
Dave

I had a teacher at school who said you couldn’t vote Tory and be a good Catholic. Mind you he was a card carrying Communist.

Alan McGuffog
25 Posted 23/06/2020 at 14:14:35
Chris...Franco didn't exactly walk with the Orangemen on the 12th did he ?
Chris Williams
26 Posted 23/06/2020 at 14:56:25
He certainly didn’t Alan, but then he wasn’t a Communist either.

I suspect Malachi didn’t approve!

Peter Mills
27 Posted 23/06/2020 at 15:05:01
Oh Dave#21, that honesty got you in trouble with Michael on here the other day!
Alan McGuffog
28 Posted 23/06/2020 at 15:12:35
Chris...the recognised expert on matters Franco, and the Civil War is the blue nose, and ex St Eddie's man, Paul Preston. In fairness he points out that the Generalissimo was not much of a believer but was bullied into church going by his missus. She spent most of her life on her knees, seemingly. At her devotions that is.
Dave Abrahams
29 Posted 23/06/2020 at 15:22:46
Peter (27), yes I know Peter, it’s hard being a Catholic but it will be worth it in the end, and Michael doesn’t believe in God, shameful !!!
John Wilson
30 Posted 23/06/2020 at 15:24:51
Objectively Carlo is an intelligent man and probably just wants to pay lower tax rather than a massive chunk going to the taxman. Carlo is liable if the allegations are true as the accountant or agent do not just say sign on the dotted line. Everything is explained to the principal which is Carlo and the agent acts on those instructions. In law Carlo likely has legal personality which is to say a legal company, a limited company and so his normal personality is protected from liability. If the transaction was made in his own personality or in his own name then he alone is liable. The law of agency protects both principal and agent and other 3rd parties. Any millionaire would do the same. If the agent and or accountant mislead Carlo where otherwise there could have been legal ways to save tax through legal schemes and Carlo took that professional advice to be his legal rights then the liability switches to those third parties. Carlo has a good defence in those circumstances and can sue those third parties as companies or individuals in their own name.
Terry White
31 Posted 23/06/2020 at 15:26:42
And we don't use bad language either, do we Dave (#21, 23, 29)?
John Wilson
32 Posted 23/06/2020 at 15:27:45
I am not an expert. My education is law degree and commercial transactions law. Just my opinion. I am not a professional in that sense, for information purposes. I help families in the family court situation online.
Chris Williams
33 Posted 23/06/2020 at 16:03:46
Alan,

I know Paul Preston's writing, although it's many years since I really got reading about the Spanish Civil War, I read his Concise History. I didn't know his personal background. I knew he was a good writer!

We had a break in a place called Ronda in Andalusia a few years ago which had a pretty rugged history in that conflict. Steeped in it. It features in a Hemingway novel, but isn't named. I don't remember which novel, now, which pisses me off.

They chucked a fair few priests off a bridge into a deep gorge seemingly. It's described very accurately in the novel. Many restaurants and bars there are like Republican shrines. Mecca for bullfighting too, hence Hemingway's love of the place.

Jay Wood
[BRZ]

34 Posted 23/06/2020 at 16:21:58
Chris, that Hemmingway book must surely be 'For Whom the Bell Tolls'...?

Good pre-Norwich presser from Carlo available.

Carlo Presser for Norwich game

Anthony Gordon will be made up to hear the manager saying he wasn't selected as a token nod to the academy, but because he was considered important and the best option for the game.

The club has evidently studied other leagues that have already re-started and he noted that all data shows a fall off in energy and performance levels.

Given that this is a quick turn around for the Blues who will fly in, disembark and play the say day, whilst Norwich will have two extra rest days, I would expect changes to the starting XI.

Didn't offer any excuses about that when asked about the difficulty of travelling to and playing an away game the same day, replying "Ask me again after the game. Many things are new. We just follow Premier League protocol."

He said he was pleasantly surprised at the fitness levels of the players in the first game. Indeed, the starting XI bar Gordon virtually played the full 90 minutes with Bernard and Kean coming on very late.

Chris Williams
35 Posted 23/06/2020 at 16:28:40
Of course it is thanks Jay.

I might watch that match tomorrow.

Dave Abrahams
36 Posted 23/06/2020 at 17:04:31
Terry (31), I hope you are not trying to make me tell a lie.

Get thee behind me, Satan!!

Jerome Shields
37 Posted 23/06/2020 at 17:27:04
John #30,

Lord Denning said, "The law of the Land is an agreement believe two solicitors and who they engage. It is often not the law. "

In my experience, the money available is carved up for legal fees and what's left is the settlement or agreement.

Ancelotti has to make the money available as little as possible.

Derek Taylor
38 Posted 23/06/2020 at 17:59:28
Sort of explains why Carlo was so anxious to take the Everton job, don't you think?

Thank goodness!

Terry White
39 Posted 23/06/2020 at 18:00:31
Would never do that, Dave (#36). I am sure there is a confessional somewhere near you, in any event.
Dave Abrahams
40 Posted 23/06/2020 at 18:16:30
Terry (39), strangely, confession is a sacrament that is used a lot less today than when you and I (notice the grammar there, Terry) were growing up. Nevertheless, not many of us are saints so I do make use of it now and again. Don't use my own church, though, Terry, the priest would recognise my voice and that would never do.
Terry White
41 Posted 23/06/2020 at 18:53:30
Perfect use of grammar, Dave, you set an excellent example for us all. A credit to your education.

I am delighted to read that you know your way to the local church, Dave (#40) and are on speaking terms with your Pastor. While confession ("Reconciliation" now, surely?), is almost old fashioned, its (notice the grammar, no apostrophe) need is no less now than in the past. Watching Everton from a distance now forces me into saying things I shouldn't (Bernard or Davies losing the ball in midfield, for example) and my dear Mum would have had me washing my mouth out with soap prior to heading to the confessional.

Over here in my part of the USA we are able to attend Mass suitably masked and distanced. Now, at least, I can identify a weekend as being one of the days I attend Mass rather than every day being the same as every other.

End of religious discussion from my end. Apologies to all who could not care less about religion or correct grammar. Am already concerned about team selection for tomorrow.

John McFarlane Snr
42 Posted 23/06/2020 at 18:57:39
Hi Dave, [40],

I must 'confess' that I can't remember the last time I went to confession, I guess I can be described as a relapsed Catholic.

I think you know that I am not entirely anti-swearing, it's just that inappropriate swearing, in the company of women or children, disappoints me.

Another thing I find hard to come to terms with is disrespect, it's unrealistic to expect everyone to agree on any given subject, but disagreement can be expressed in an acceptable manner. Maybe I'm behind the times, because some who know me well, often refer to me as "Johnny McFossil", but we are who we are.

Colin Glassar
43 Posted 23/06/2020 at 21:26:13
The Spanish tax system is the same one they used during the Spanish Inquisition (Python fans?) – in other words, it's archaic and confusing. Carlo will pay a fine (like Messi and Ronaldo) and get on with it.

As for confession, the last time I confessed, the judge sent me down for 3 years! I'll get me coat.

Dave Abrahams
44 Posted 23/06/2020 at 21:31:57
Terry (41), nice post. I think we will be back in church on Sunday week going by today's announcement. You are right in every day being the same as the last one, so Sundays will break the monotony.

As for swearing, I do it a lot, but as John (42) says, never in front of women, or priests. Although your friend Peter tells a cracking story of travelling fans and priests and a bit of swearing going on, but I think you know the story.

Nice talking to you, Terry, hope you are well.

Peter Mills
45 Posted 23/06/2020 at 21:58:53
Dave #44, Apart from that tale (from Sheffield Utd, away in the Cup 1970), my Dad also used to love telling the story about going to Confession, being given his penance, all in strict anonymity, then being asked, “What was the score, Charlie?”
John Davies
46 Posted 23/06/2020 at 21:58:58
Real Madrid are a disgrace the way they write contracts that allow players and managers to get away with not paying tax. When David Beckham went there, they devised a tax-avoiding contract for him, and it was even called the "Beckham". It's one of the reasons why our Dave has never been made a "Sir". His time with the ES taxman will come as well.
Dave Abrahams
47 Posted 23/06/2020 at 22:32:24
Peter (45), another good one Peter.

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