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John Elkann, Chairman of Ferrari and Stellantis, has reached an agreement to perform a year of community service and contribute to a multi-million euro settlement, resolving an inheritance tax dispute in Italy.
Italian prosecutors have stated that Mr. Elkann, along with his siblings Lapo and Ginerva, will pay €183 million (£159 million) to Italian tax authorities, according to various media outlets.
The lawyer representing Mr. Elkann clarified that the agreement does not constitute an admission of liability on the part of the Ferrari Chairman and his siblings.
He further noted that the prosecutors’ decisions present an opportunity to bring “this painful affair to a swift and definitive close.”
Mr. Elkann, a prominent figure from one of Italy’s influential families, is the grandson of Gianni Agnelli, the former head of Fiat.
The tax dispute is connected to the estate of Mr. Elkann’s grandmother, Marella Caracciolo, who passed away in 2019.
Mr. Elkann will need to propose suitable venues for his community service, which, according to Reuters, may include assisting at a care facility for the elderly or a center aiding individuals struggling with drug addiction.
Paolo Siniscalchi, the Elkanns’ attorney, stated to the BBC: “John Elkann’s request for probation must be viewed in this context and does not entail, just as the settlement with the tax authorities does not, any admission of responsibility.”
“If this request is granted, the proceedings against him will be suspended, and upon the successful completion of the probationary period, will conclude with a ruling extinguishing all the charges for which John Elkann is currently under investigation.”
“This outcome would mirror that of his siblings Ginevra and Lapo, for whom dismissal of charges has been requested.”
Prosecutors had alleged that the Elkann siblings failed to declare approximately €1 billion in assets and €248.5 million in income, based on the premise that their grandmother was a Swiss resident.
On Monday, prosecutors accepted the agreement to pay millions and have requested the judge to drop the criminal case against Mr. Elkann’s brother and sister, which has since been dismissed.
The case originates from a broader dispute between the Elkann siblings and their mother, Margherita Agnelli, regarding the estate of Gianni Agnelli. A civil case remains ongoing.
Mr. Agnelli passed away over 20 years ago after transforming Fiat from a small automotive manufacturer into a major conglomerate.
Ms. Agnelli, who inherited €1.2 billion, has been actively challenging agreements she signed in 2004 following her father’s death, seeking to ensure that funds are allocated to her five children from a second marriage rather than her three eldest.
Lawyers representing Ms. Agnelli have issued a statement welcoming the outcome of these tax and criminal proceedings.
Mr. Elkann is the eldest of Ms. Agnelli’s children. He has held the position of Chairman at Stellantis since 2021 and assumed the role of Chairman at Ferrari in 2018, according to Stellantis.
He initially joined Fiat’s board in 1997 and previously served as the company’s Chairman.
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