Carlo Ancelotti has been accused of failing to pay €1m in taxes by prosecutors in Spain.
The Madrid Community Prosecutor's office allege that the Everton manager avoided paying taxes on his image rights earnings during his time in charge of Real Madrid in 2014 and 2015.
In a statement, the organisation claimed the 61-year-old concealed revenues "intending to avoid his tax duties towards the public treasury with no justification", as quoted by the BBC.
Ancelotti has not yet responded and Everton have no comment on the matter.
The Italian appointed as Real Madrid manager in June 2013, replacing Jose Mourinho at the Bernabeu, and left the Spanish giants almost two years later in May 2015.
After spells with Bayern Munich and Napoli, he was appointed as the Blues' manager in December 2019, taking over from Marco Silva on a permanent basis following a temporary spell under the leadership of Duncan Ferguson.
