Real Madrid coach Carlo Ancelotti told a Spanish court on Wednesday he had believed his tax affairs were legal as he testified in a trial in which he is accused of failing to pay 1 million euros ($1.08 million) in tax on image rights revenue, Reuters reported.

"For me, everything was in order," Ancelotti said. "I never thought about committing fraud."

Taking the stand on the first day of the trial, the Italian said that when joining the Spanish team he had been offered a net salary of 6 million euros and had left it up to the club and his British adviser how that was structured.

"I thought it was quite normal because at that time all the players and the previous coach had (done the same)," added Ancelotti, who testified for around 40 minutes.

He is the latest of several soccer celebrities to be investigated by the Spanish tax authority for alleged tax fraud.

While some leading players such as Portugal's Cristiano Ronaldo and Spain's Diego Costa have settled out of court with large fines, others such as Bayer Leverkusen coach Xabi Alonso decided to defend their innocence in court

The prosecutor is seeking a prison term of four years and nine months for Ancelotti and a fine of 3.2 million euros for two counts of tax evasion in 2014 and 2015.

It argues that he had only reported the salary he was paid by Real Madrid and had omitted income from his image rights in his tax returns.

Ancelotti said that image rights were not significant for coaches in the way they are for players.