If found guilty, the sitting coach could face years in jail.
ADVERTISEMENTSpanish state prosecutors have accused Real Madrid coach Carlo Ancelotti of alleged tax fraud, claiming he used shell companies to hide parts of his income during his first stint at the club a decade ago.
Prosecutors said in a statement on Wednesday that Ancelotti faces two counts of tax fraud that would be punishable with four years and nine months of prison.
The Italian coach is alleged to have illegally evaded €1 million in taxes in 2014 and 2015. The prosecutors claim that during that period Ancelotti only declared the income he received from Real Madrid and did not declare income from image rights, allegedly setting up a "confusing" system of shell companies to hide his extra earnings.
The 64-year-old Ancelotti coached Madrid from 2013-2015 before rejoining the club in 2021.
Ancelotti is one of football's most successful coaches. He is the only coach to have won the Champions League four times, twice with Madrid and twice with AC Milan, and the only coach to have won domestic league titles in England, Spain, Italy, Germany and France.
Spain has cracked down on top football profiles who have not paid their due.
Former Madrid coach Jose Mourinho received a one-year suspended sentence after reaching a guilty plea for tax fraud in 2019. Star players Lionel Messi and Cristiano Ronaldo have also been found guilty of tax fraud in Spain.