Brazil coach Luiz Felipe Scolari is reportedly facing a criminal investigation for tax evasion in Portugal.
Scolari, who won the FIFA World Cup with Brazil in 2002, is believed to have evaded taxes somewhere between 2003 to 2008, when he was incharge of the Portugal national team.
According to Sky News, the Portuguese authorities, who are reportedly investigating the case, suspect Scolari of evading taxes upto €7m during his time in the country. The report quotes Brazilian newspaper Folha de Sao Paolo, claiming the money was allegedly deposited in offshore accounts.
The report further added that Scolari, who lead Portugal of the 2006 World Cup semifinals, did not declare his income during the period.
However, the former Chelsea boss has denied all allegations, saying that he was not involved in any wrongdoing.
"I have correctly filed all my tax returns. In all the countries where I've worked, I've always declared my income. If anything is wrong, it's not my fault. I hope justice gets to the bottom of the facts," Scolari stressed in a statement.
Scolari was Portugal's most successful coach, leading them to the finals of the 2004 Euros and the semifinals of the 2006 World Cup.
If the Portuguese authorities find enough proof and decide to press charges against Scolari, the Brazil coach will have to present himself before the Portuguese court.
Tax evasions is a serious crime in Portugal and, if large amounts of money is involved, the guilty can be either sentenced upto eight years in prison or be slapped with heavy fines.
The 65-year-old, whose side is one of the favourites to win the 2014 World Cup that starts next month, had recently announced his 23-man squad for the competition.
Brazil's WC squad
Goalkeepers: Julio Cesar (Toronto FC), Jefferson (Botafogo), Victor (Atletico Mineiro)
Defenders: David Luiz (Chelsea), Dante (Bayern Munich), Thiago Silva (Paris Saint-Germain), Henrique (Napoli), Maicon (Roma), Dani Alves (Barcelona), Marcelo (Real Madrid), Maxwell (Paris Saint-Germain)
Midfielders: Luiz Gustavo (Wolfsburg), Paulinho (Tottenham), Fernandinho (Manchester City), Ramires (Chelsea), Oscar (Chelsea), Willian (Chelsea), Hernanes (Inter Milan)
Strikers: Hulk (Zenit St. Petersburg), Bernard (Shakhtar Donetsk), Neymar (Barcelona), Jo (Atletico Mineiro), Fred (Fluminense)