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The Football Association have been assured Fabio Capello's taxes are in order after reports he is being investigated in Italy.
Capello's advisors were contacted by The FA after it was reported their new head coach was being investigated for tax fraud.
According to a legal source in Italy the 61-year-old is to come under the microscope by prosecutors in the northern city of Turin.
However, it appears the FA have known about the matter for some time and are confident nothing substantive will emerge.
"It is our understanding that the Italian tax authorities are currently following a procedure of looking into the finances of a number of high-profile individuals," said an FA spokesman.
"We have spoken to Fabio and his advisors about today's newspaper reports in Italy and they have explained the facts.
"They have also given us their assurances that Fabio Capello's tax payments are in order.
"The FA have no further comment to make on this subject."
The experienced Italian tactician has only recently been appointed England boss following Steve McClaren's sacking last year.
Capello was at the Madejski Stadium on Tuesday to cast his eye over Reading's FA Cup replay with Spurs ahead of next month's friendly with Switzerland.
The former Juventus coach's son Pier Filippo, who handles his father's business affairs, told Gazzetta dello Sport: "It's only a tax assessment, which has arisen from controls of the budget of Juventus - an issue dating back to some time ago which is known to all.
"It's part of the modus operandi adopted up to now, to ascertain the earnings of high-profile individuals.
"One of the reasons for such dealings is that high-profile individuals, such as my father, often change residence for work reasons."
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