Carlo Ancelotti has been accused by prosecutors in Spain of not paying €1m in taxes.
The charge relates to tax due for image rights earnings during the Italian’s time as Real Madrid boss in 2014-15.
The Madrid Community Prosecutor’s office claims the 61-year-old concealed revenues “intending to avoid his tax duties towards the public treasury with no justification.”
Ancelotti is yet to respond and Everton said they have no comment to make.
The Toffees played their first game since the Premier League’s restart against Liverpool on Sunday, drawing 0-0 at Goodison Park.
Ancelotti, a former Italy international, took charge of the Merseyside club in 2019 after a year at Serie A side Napoli.
Big-name players such as Portugal’s Cristiano Ronaldo and Argentina’s Lionel Messi and, more recently, Brazilian-Spanish player Diego Costa, have also been sued in tax cases, as has Portuguese coach Jose Mourinho.
They all agreed to pay fines