The Tottenham boss - tipped to be the next England manager - is accused of hiding the two 'off-the-record' payments in an offshore tax haven.
Redknapp, 64, flew to the Mediterranean principality to open the account called Rosie 47, a combination of his dog's name and the year of his birth, a jury was told.
Court: Tottenham boss Harry Redknapp - who was wearing glasses - appears in the dock accused of tax evasion
Facing court: Harry Redknapp, right, enters Southwark Crown Court. His son Jamie, left, who is a pundit and former footballer was in the public gallery to support him
Both payments were made in American dollars by Portsmouth chairman, Milan Mandaric, when Redknapp worked at the club, the court heard.
But the cash was 'deliberately and dishonestly' concealed with the prime purpose of avoiding the payment oftax, the jury was told.
Prosecutor John Black QC told Southwark Crown Court 'both parties must have known' they were avoiding taxes. 'These payments were a bung or offshore bonus that the parties had absolutely no intention of paying taxes for,' he said.
Redknapp, who underwent heart surgery last year to unblock his arteries, is the most successful English manager in the modern game. He led Portsmouth to FA Cup success and Spurs into last season's Uefa Champions' League. Mandaric, 73, is now chairman of Sheffield Wednesday, and has previously worked at Leicester City.