Taxes Paid, But Criminal Investigation to Continue
Likely to Avoid Trial Through Community Service System
John Elkann, Chairman of Stellantis and Ferrari and a member of the Agnelli family?often referred to as the "Kennedys of Italy"?has agreed to pay 175 million euros (approximately 282.8 billion won) to the Italian tax authorities in connection with tax evasion allegations. On July 15, Yonhap News reported, citing a statement from a spokesperson for the Elkann family sent to Italy's ANSA news agency, that the family had decided to pay the full amount of taxes assessed by the tax authorities. The spokesperson emphasized, "This agreement was made to quickly and definitively resolve a painful issue on both a personal and family level," and added, "It was reached without any explicit or implicit acknowledgment of the validity of the original claims."
The Agnelli family's inheritance dispute has attracted significant attention not only in Italy but also worldwide. The Agnelli family, which founded the Italian automobile company Fiat Group in 1899, is so prominent that it is often called the "Kennedys of Italy." The family owns Stellantis?which was formed through the merger of Fiat Chrysler Group and Peugeot Citroen Group?Ferrari, and even the professional football club Juventus. Among its members, John Elkann, the grandson of the late Gianni Agnelli, who founded Fiat Group, serves as Chairman of Stellantis and also chairs Exor, the holding company that owns Juventus and other assets.
Previously, Chairman Elkann had been under investigation by prosecutors in Turin since last year on suspicion of aiding and abetting his grandmother Marella Agnelli in tax evasion. Prosecutors allege that Marella falsely declared her residence as Switzerland, while in reality she lived in Italy, and as a result, when Marella died in 2019, Elkann inherited a substantial estate without paying inheritance taxes. The Italian tax authorities subsequently assessed a total of 175 million euros, including unpaid taxes, penalties, and interest.
This investigation began when Elkann's mother, Margherita Agnelli, reported her three children (John, Lapo, and Ginevra) to the authorities. Margherita had three children, including Elkann, with her first husband, and five more children with her second husband. It is reported that Margherita filed the complaint after Elkann, who was named as the family's successor, distributed key company shares only among his siblings from the first marriage, excluding his half-siblings. After much deliberation, Chairman Elkann, together with his younger brother Lapo and younger sister Ginevra, agreed to pay the full amount of taxes assessed by the tax authorities.
Although Chairman Elkann has resolved the tax issue through the agreement with the tax authorities, the criminal investigation by the Turin prosecutors is continuing independently. Prosecutors intend to proceed with the investigation into allegations of tax evasion and fraud against the state by Elkann. However, Il Fatto Quotidiano reported that Elkann is actively considering Italy's "Messa alla Prova" system. This system allows defendants in certain types of cases to suspend criminal proceedings if they fulfill court-imposed conditions, such as community service, instead of standing trial. The outlet predicted that Elkann may seek to avoid a criminal conviction and maintain his current management positions by utilizing this system.
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