AC Milan vice-president Adriano Galliani has blamed the Spanish tax system after revealing that the Italian club's hopes of bringing Kaka back to the San Siro from Real Madrid are dead in the water.
"The deal for Kaka is off, we were waiting to hear from a tax man in Spain and we got his reply today. The deal is off because it is too risky," Galliani told Milan's official website.
"After a year in Italy the so-called 'Beckham law' would no longer have applied meaning that Kaka's taxes would have risen drastically as Italian tax laws state making it virtually impossible for the rossoneri to make such an investment."
Kaka left the Rossoneri for Real Madrid in 2009 for a reported 65 million euros ($78.74 million), but has endured a difficult spell in Spain, with injuries and loss of form seeing him fall down the pecking order under Jose Mourinho.
The Beckham Law was introduced in Spain in 2005 as a means of attracting foreign workers into the country by considerably reducing their tax liabilities.
Milan has completed one signing, however, with France Under-21 striker Mbaye Niang, 17, signing from Caen on a three-year deal.
"He can play in every role up front, he will train with (coach Massimiliano) Allegri and the first team and we think he is a good player although I always prefer to wait six months before I make up my mind on new signings."
Niang had also been linked with English Premier League clubs Arsenal - with which he spent time on trial earlier this northern summer - and Everton.
He made his Ligue 1 debut with Caen aged 16 in April, 2011, and went on to make a total of 30 top-flight appearances, scoring five goals.
Sevilla appears to be holding out for a better price for midfielder Luis Alberto, despite sporting director Ramon Verdejo admitting Liverpool has made a 'very good' offer.