Luiz Felipe Scolari could face up to 17 years in prison if he is convicted of tax evasion and money laundering, according to LANCE!NET.
The Brazil coach is being investigated by the Portuguese authorities on suspicion of failing to declare around € 7 million (£ 21.2 million) between 2003 and 2008.
Scolari denies any wrongdoing and in a statement released on Tuesday, he said: “I did all my tax returns correctly. In all countries in which I worked, I always declared my income. If there is something wrong, it is not with me.”
