MILAN: Ferrari and Stellantis Chair Agrees to Community Service in Inheritance Tax Settlement
In a stunning turn of events, the chair of Ferrari and Stellantis, John Elkann, has agreed to one year of community service and a joint payment of millions of euros to settle a heated dispute over inheritance tax in Italy.
Elkann, alongside his siblings Lapo and Ginerva, will collectively pay a whopping €183m (£159m) to Italian tax authorities, as confirmed by Italian prosecutors and reported by various media outlets.
Their lawyer has clarified that this agreement does not signify an admission of guilt from the Ferrari chair and his siblings, emphasizing that the prosecutors’ decision was seen as an opportunity to finally put an end to this lengthy and contentious affair.
As a scion of one of Italy’s most influential families, Elkann, the grandson of former Fiat boss Gianni Agnelli, found himself embroiled in a tax dispute surrounding the estate of his grandmother, Marella Caracciolo, who passed away in 2019.
As part of the settlement, Elkann will have to propose where he will carry out his community service, which could potentially involve assisting at a center for the elderly or a facility dedicated to aiding individuals struggling with drug addiction, as per Reuters.
Paolo Siniscalchi, the Elkanns’ attorney, stressed in a statement to the BBC: “John Elkann’s probation request should be seen in this light and does not imply, just like the settlement with the tax authorities, any acknowledgment of wrongdoing.”
“If this request is granted, the legal proceedings against him will be put on hold, and upon successful completion of the probation period, all charges against John Elkann will be dropped.
“This outcome would mirror the situation of his siblings Ginevra and Lapo, who have also seen charges against them dismissed.”
Prosecutors had alleged that the Elkann siblings failed to disclose assets worth around €1bn and income of €248.5m, citing their grandmother’s Swiss residency as the basis for their actions.
On Monday, prosecutors accepted the multimillion-euro settlement and have requested the judge to close the criminal case against Elkann’s brother and sister, which has been dropped.
The roots of this case lie in a broader conflict between the Elkann siblings and their mother, Margherita Agnelli, regarding the estate of Gianni Agnelli, with a civil case still ongoing.
Gaagnelli, who passed away over two decades ago after transforming Fiat from a small car manufacturer into a major conglomerate, left behind a substantial inheritance of €1.2bn.
Ms. Agnelli has been fighting to challenge agreements she signed in 2004 following her father’s death, aiming to ensure that the money goes to her five children from a subsequent marriage rather than her three eldest offspring.
Expressing satisfaction with the outcome of the tax and criminal proceedings, Ms. Agnelli’s legal team released a statement welcoming the resolution.
Elkann, the eldest of Ms. Agnelli’s children, assumed the role of Chair at Stellantis in 2021 and took over as Chair of Ferrari in 2018, according to Stellantis.
Having first joined Fiat’s board in 1997 and previously serving as the company’s Chair, Elkann’s journey has been nothing short of eventful. — BBC
