Real Madrid manager Carlo Ancelotti testified in court in Spain, stating that he "never considered committing fraud" in relation to tax evasion charges.
The former Chelsea and Everton coach is accused of evading 1 million euros (£830,000) in taxes on his salary from his first tenure at Real Madrid, which lasted from 2013 to 2015.
Ancelotti returned to manage Real Madrid in 2021.
Prosecutors are pushing for a prison sentence of four years and nine months, along with a fine of 3.2 million euros (£2.7m).
The charges stem from allegations that Ancelotti only declared tax on his salary from Real Madrid while omitting income from image rights in his tax returns.
"I believed everything was in order," Ancelotti said while speaking at the Provincial Court of Madrid.
The Italian manager explained that he had agreed to a net salary of 6 million euros (£5.1m) with Real Madrid and relied on his financial advisors to manage the details of his contract.
"I thought it was completely normal because, at the time, all the players and the previous coach had done the same," he added.
He also clarified that for coaches, image rights don't carry the same significance as they do for players, as they don't generate income from shirt sales.
Several prominent figures in Spanish football have faced tax evasion charges in recent years.
In 2017, Barcelona's Lionel Messi was fined 252,000 euros after a 21-month prison sentence was initially imposed.
In 2019, Real Madrid's Cristiano Ronaldo accepted an 18.8 million euro fine following an out-of-court settlement, while José Mourinho was fined 2.2 million euros for tax-related charges from his time managing Real Madrid in 2011-12.
